Bakrie unexpectedly wins order to import oil from Iraq

Kondur Petroleum, a local company owned by the Bakrie Group, and Java Atlantic Oil have unexpectedly won the order to import crude oil from Iraq under the United Nations-sponsored oil for food program, Republika daily reported on Wednesday.

The appointment of the two companies seemed strange because none of them were part of the 10 companies recommended by the Ministry of Industry and Trade to carry out the program.

Director general of international trade at the ministry, Djoko Moelyono, acknowledged that none of the companies were part of the names recommended by his office to do the job. "It is the rights of the Iraqi government to select which companies it wants to. But if there is a dispute, the government will not be responsible," he added.

The ministry recommended 10 companies last month to the Iraqi embassy in Jakarta to be involved in the oil for food program. But none of the recommended companies met the Iraqi government's requirement.

Sources said that the Iraqi ambassador rejected the names recommended by the ministry on fears that the bad track record in the past would be repeated. Previously the Iraqi government appointed Perta Oil as the only company involved in the oil for food program. The company, however, never met the sales target, and this really upset the Iraqi government.

In the first stage, Kondur and Java Atlantic will be given the chance to import 2 million barrels of crude oil from Iraq, respectively. The amount of the crude oil to be imported by the two companies would be part of the 7 million barrels of crude oil which had not been realized under the previous contract. (*)