BPMIGAS mulls awarding EPC Cepu stage V project to Rekin

The upstream oil and gas regulator BPMIGAS is considering to award the EPC of stage V of the Cepu Block project in Central Java, which is developed jointly by Mobil Cepu Ltd and Pertamina EP Cepu, to PT Rekayasa Industri (Rekin).

Deputy head of BPMIGAS Hardiono said Rekin and Lipin ranked second as potential winner for the project. However, since the winner PT Timas and PAL failed to reach an agreement on the price, the logical choice goes to the ranked second bidder, namely Rekin and Lipin.

?We are now in the middle of evaluating the possibility of Rekin developing the EPC stage V project. We are clarifying and negotiating the cost of the project with Rekin,? said Hardiono.

He said BPMIGAS needs to clarify the capability of Rekin as the company has already secured a number of projects in oil and gas industry. In the EPC 3 Cepu project, Rekin has secured contract to develop a refinery. ?Does the company still have the energy to develop all of those many projects, we will have to ask them,? Hardiono said.

BPMIGAS also is discussing the request of Mobil Cepu Ltd to retender the EPC IV project in Cepu Block, and appoint directly the Sembawang Corp-PT Scorpa Pranedya consortium. ?As for EPC IV, we are waiting for AFE (authorization for expenditure) proposed by the Semb Corp and Scorpa consortium,? said Hardiono.(Godang/roffie)