AGO investigating corruption possibility in Caltex's tender

State oil and gas company Pertamina said on Wednesday that attorney general office is currently investigating submersible pump maintenance procurement tender irregularities in Indonesia's largest crude producer PT. Caltex Pacific Indonesia but thus far no parties had been declared suspect.

Effendi Situmorang, Pertamina production sharing management director told Petromindo.Com in an interview that AGO is probing the possibility of corruption in the tender process.

He said he had been asked by AGO to give information regarding the tender.

Caltex had selected PT Inti Jatam Pura (PT IJP) as winner for submersible pipeline service and maintenance works in Caltex's oil fields for US$230 million, up from the $130 million benchmark PT CPI had agreed with Pertamina.

The price was considered way too high and potentially causing some US$ 100 million loss to Indonesia, as Caltex is a contractor who would recover its costs to the state.

Effendi Situmorang said Pertamina had ordered Caltex to renegotiate the contract and PT IJP had finally agreed to lower the price below the US$ 130 million benchmark. (alex)