Govt cancels tender for L Parigi gas project

ASX-listed firm New Holland Mining Limited said Wednesday that Indonesian authority has cancelled the tender for the L Parigi offshore gas project in West Java.

The company extended yesterday a call option agreement to acquire up to 55 percent of the consortium for the project.

?The call option will lapse in the event that the tender process is cancelled,? the company said.

According to the company, it has not been aware of the circumstances regarding the cancellation of the tender or the future intention of the Indonesian authority with regard to the optimum extraction of the gas reserve.

In January 2006 the company announced that a consortium in which it had 20 percent stake, had been declared as lowest price bidders out of three companies applying for a 15-year contract for the enhancement L Parigi Project, owned by state oil and gas company Pertamina.

However, the consortium had not been able to complete the deal as it was still waiting for ?letter of appointment from Indonesian Authority?.(denny)