Inti Jatam named to operate Caltex?s submersible pumps

The Implementing Agency of Oil and Gas (BP-Migas) has finally agreed to name PT Inti Jatam Pura to operate and manage part of Caltex Pacific Indonesia?s submersible pumps after the company lowered its bid to US$130 million from initially $230 million to carry out the project, Koran Tempo reported on Saturday.

Sidick Nitikusumah, the agency?s senior manager for public service, said in Jakarta on Friday that PT Inti Jatam was formally named as the winner of the tender only in September this year.

Caltex launched the tender to operate and manage its submersible pumps in the middle of last year. The project comprised of two packages. The package-A for the southern area was won by PT Reda Pumps Indonesia for $152 million and the package-B for northern area by PT Inti Jatam Pura for $230 million.

But the appointment of PT Inti Jatam Pura was delayed because the price it offered was far from the estimation. The government through the agency should approve the winners of such tenders because the costs would be part of the expenses, which should be recovered from part of the oil production. (*)