Gus Dur tirade against S'pore worrying legislator, gas producers
Tuesday, November 28 2000 - 03:30 AM WIB
Legislators and the country's oil and gas industry have voiced concerns over the angry statement made President Abdurrahman Wahid against Singapore, saying the statement may strain relations between Indonesia and Singapore, which will impact the gas deals that has been will be made by both countries.
Head of the House of Representatives' Commission VIII for energy and mineral resources, environment and science and technology Irwan Prayitno said he understood the President's disappointment over Singapore's senior minister Lee Kuan Yew but he could not accept the way the President expressed his disappointment.
Lee is also former Prime Minister of Singapore.
The President, who is better known by his nickname Gus Dur, should voice his anger in private rather than in public.
"I regret the statement made by Gus Dur because the statement could have significant impacts on the projects which have been agreed upon and are being negotiated by both countries," Irwan told Petromindo.Com.
Gus Dur criticized on Saturday Lee for underestimating Malays and Singapore for only thinking about profits in its relation with Indonesia.
Gus Dur threatened to teach Singapore a lesson by withholding water supplies to the country. As a matter of fact, the project that will supply Indonesian water to Singapore is still in negotiation stage.
An oil and gas executive, who wanted to remain anonymous, voiced fear that Singapore might retaliate by annulling the multi-billion dollars contract that it had signed with Indonesia.
State oil and gas company Pertamina signed last year a deal with Singapore's Sembawang Gas (SembGas) allowing the former's production sharing contractors in the West Natuna area in the South China Sea to send natural gas to SembGas.
Under the deal, the West Natuna Consortium Group, including Britain-based Premier Oil, Canadian firm Gulf Resources, and American firm Conoco Inc., will supply gas to Singapore through a 640-kilometer underwater pipeline for 22 years starting mid-2001.
The consortium has said the construction of the gas pipeline is now nearing completion that the first West Natuna gas can arrive in Singapore next month or in January next year. Sources said Gus Dur planned to preside over the ceremony to mark the arrival of the gas in Singapore.
The West Natuna gas deal is expected to generate a total of US$8 billion in gas revenue for the Indonesian government. Coordinating Minister for Economy Rizal Ramli recently said the government planned to issue bonds guaranteed by the revenue expected from the gas deal.
Aside from the West Natuna gas deal, Pertamina and its production-sharing contractors in Central and South Sumatra, including Gulf Resources and Santa Fe, also planned to send gas from Sumatra to Singapore through pipeline.
The gas contract, which is expected to generate billions of dollars for the Indonesian government, is being negotiated.
However, Minister of Energy and Mineral Resources played down on Monday the possible impacts of Gus Dur's statement on the gas deals that had been clinched and planned by Pertamina with Singapore.
"This is a political matter. I think it will not much impact the gas deals," Purnomo told reporters. (Epin, Alex, Godang)