BPMIGAS denies charges of unfairness in condensate tender

Upstream oil and gas authority BPMIGAS dismissed allegations that the authority had awarded contracts to sell condensate from Arun, Aceh, without transparent tender process.

?I can not understand what they mean by open tender. Should we make public through newspapers that they are open tenders?? BPMIGAS chairman Rachmat Sudibjo said on Tuesday.

Rachmat stressed that BPMIGAS had conducted a transparent mechanism in tendering contracts to sell condensate from Arun LNG plant, and Bontang LNG plant in East Kalimantan. PT Gold Manor had won the contract to market Arun condensate, while PT Novaco had secured the rights to sell condensate from Bontang, Rachmat said.

In response to allegations that Gold Manor had sold condensate at low prices, Rachmat said it was because of falling crude oil prices in the world market.

Meanwhile, director general of oil and gas Iin Arifin Takhyan said they would ask BPMIGAS to clarify allegations about the condensate tender.

Arun LNG plant, operated by PT Arun NGL Co, produces 300,000 barrels of condensate per month, the same volume turned out by Bontang LNG plant. (*)