BPH Migas will soon auction two pipeline projects

BPH Migas, the regulator body for oil and gas downstream operations, will soon put on tender the construction work of two oil pipeline projects which will link Cirebon, Semarang and Gresik in East Java.

Speaking at a hearing with members of the House of Representatives (DPR) in Jakarta on Thursday, the head of BPH Migas, Tubagus Haryono said that the pre-qualification tender for the construction of the two pipeline projects would be officially opened on March 30.

Bidders will include Mitsui and Sumitomo, both of Japan and a consortium of national companies Rekayasa Industri and PT KAI. The first pipeline will connect Cirebon and Semarang and the second one will link Semarang and Gresik.

Tubagus said that the pipelines which would be used to transmit crude oil could also be used by other private parties under a business to business arrangement. The construction of the two pipelines would cost about Rp 6 trillion. (*)