Chiyoda may be picked as Aceh gas block EPC contractor

By Bernard Loebs

A consortium led by Japan engineering firm Chiyoda Corp. may be selected as EPC contractor for the Aceh Block A PSC gas facilities development onshore Aceh as it emerged as the only bidder who passed technical selection in re-tender process, a senior official with upstream oil and gas authority BPMIGAS said.

Deputy Chairman Hardiono told Petromindo.com recently that under re-tender held by operator Medco E&P Indonesia, three consortia passed administration selection but only Chiyoda consortium passed technical selection. ?According to bidding rule, tender process may be continued,? he said.

The government last year extended the existing contract on the block that expires this year for another 20 years. Medco is the block?s operator with 41.67 percent interest, in partnership with British firm Premier Plc (41.67 percent) and Japanese firm Japex (16.67 percent).

The block is expected to start production in 2013-14, supplying 110 mmscfd of gas to Aceh fertilizer maker PT Pupuk Iskandar Muda and 15 mmscfd to a power plant operated by state power firm PLN in East Aceh.

Editing by Alexander Ginting