CNOOC: Blora Center is wrong
Friday, January 27 2006 - 02:07 AM WIB
Blora Center alleged that CNOOC has marked up the value of the contract. Initially, the RAMA?s value was just US$40.08 million. After a revision in 2004, the value has jumped to US$ 98 million. The difference lead to the suspicions of markup.
According to CNOOC SES Ltd?s Vice President Relations & General Affairs, Sugiarto Moechammad, it was not actually markup but reduction or efficiency of costs of $11.22 million.
?The calculation done by the Blora Center was not like that. It has a wrong perception about it,? Sugiarto told the Suara Karya newspaper on Thursday in Jakarta.
But Blora Center chief Yusuf Rizal denied that they were wrong in finding the markup in the project. Accoring to him, CNOOC can say that Blora center has wrong perception, but why it always avoid to provide clarification to Blora Center.
?Give us the correct data if CNOOC has. They?re not giving. If we ask, CNOOC always avoid us, Yusf Rizal said.
He is confident that CNOOC is hiding something and changed the contract.
Sugiarto said with confidence that the changing of the contract is in line with the correct procedure. The RAMA contract is worth of $40 million and this was reduced through the change of contract which became the Workover Services contract in 2004. The value reduced to $28.85 million. It means we saved $11.22 million.
Sugiarto said Blora Center was wrong in identifying the case because the scope of the RAMA is different from the Workover Services.
?RAMA will take care of repairs, maintenance bore operations and services mentioned in the Workover Contract,? Sugiarto said.
As far as the scope of the Workover Services is concerned , according to Sugiarto, it deals with services, standard barge equipment, call out retrievable tool, Coiled/Nitrogen (CT/N2), hydraulic fracturing, gravel packing, expandable assemblies, acid stimulation, fishing services, Tubing Conveyed Perforating (TCP) and other things.
If we calculate, the over all cost of the project in 2003 was not $40.08 million but $125.70 million. The Workover Services contract?s value is just $98.36 million.
?It is completely wrong if Blora Center says that the value is marked up to $98.36 million from $40 million. It?s wrong. Because Blora Center is calculating it partially,? Sugiarto said. (*)