Elnusa finally quits Bebelan?s LPG project
Wednesday, January 21 2004 - 02:32 AM WIB
The company?s withdrawal was unveiled by former Bekasi regent Wikanda Darmawijaya on Tuesday. It was later confirmed by director of Elnusa?s LPG plant, Harry Murti.
Harry said that Elnusa Petro Teknik decided to quit the gas-processing project due to several factors including economic reason. But he said that the withdrawal did not mean that the company was not capable.
The company?s success to win the gas processing project had been protested by other bidders who said that Elnusa won the project because of the exclusive treatment given by the Bekasi regency-owned company PT Bina Bangunan Wibawa Mukti, which is in charge of the project.
Former bidder of the gas project, PT Indomas said it was ready to take over the project on the condition that the pricing of the project should be reevaluated.
Under the cooperation agreement, PT Elnusa Petro Teknik would build a LPG plant to process gas from Pertamina?s oil wells in Babelan. The company planned to invest about US$10 million in the project.
Kompas daily reported on Wednesday that the company which had spent about $2 million to build gas processing facilities had withdrawn due to uncertainties related to the pricing of the gas.
Harri Murti said that Elnusa had waited until January to allow PT Pertamina and the Bekasi regency authority to decide the price of the gas but the deadline had passed without any decision. (*)