Condensate sale sparks more controversy

Controversy over accusation of unfair condensate tender conducted by state upstream authority BP Migas reached new height when state oil and gas company Pertamina denied it had been invited to bid in the tender.

?Pertamina downstream did not participate in the bid. I don?t know if Petral was invited,? said Pertamina spokesperson Ridwan Nyak Baik Thursday. Singapore-based Petral is Pertamina?s subsidiary dealing in crude and oil products trading.

Petral president when contacted by Petromindo.Com said that Petral was invited to participate in the tender but later withdrew. ?We were invited on April 17 afternoon to bid in the tender that was closed on April 17. There was not enough time to prepare and later we decided to withdraw from the tender,? said Petral president Sukono Wahju Thursday.

BP Migas held a tender to sell condensate from Bontang and Arun at a volume of 300,000 barrels per month each for six months starting May. This was the first crude tender held by BP Migas. Previously, Pertamina held the monopoly to sell government?s share of crude and condensate production.

BP Migas later awarded the contract to traders Gold Manor and Novarco at Indonesian Crude Price (ICP) plus 10 U.S. cents premium, a price considered by many as too low. Industry players suspected there was a collusion between BP Migas officials and the winners. Industry players said at that time BP Migas could have sold its condensate at ICP plus 35 cents premium. Traders also complained the tender was held in short notice.

BP Migas on Wednesday defended that the tender had been held in accordance with procedure and insisted that there was no collusion in the tender.

?Five traders, including Petral were invited and participated in the bidding. Novarco and Gold Manor are the highest bidders,? said Edi Purwanto, BP Migas deputy in charge of the tender. ?Despite short notice to potential bidders, tender had been held in a transparent manner. The price was the best price,? said Edi.

But Edi later on Thursday retracted his statement. He said that Petral was invited but later decided not to participate in the tender. ?There were only four participants in the bid; Novarco, Gold Manor, Concord Energy and Mitsui,? said Edi.(alex/arry/godang)