Local, foreign companies to join PLN's bid for import of fuel

As many as 12 local and foreign oil and gas companies, including Petronas and Shell, will participate in a tender for the import of one million kiloliters of High Speed Diesel (HSD) worth Rp 5 trillion to be opened by state electricity firm PT Perusahaan Listrik Negara (PLN) in early February 2007.

PLN?s chief commissioner Alhilal Hamdi said in a hearing with the House of Representatives? commission VII in Jakarta Monday that Petronas, Shell and AKR Corporindo would be among the bidders. ?State oil and gas company Pertamina has not expressed its interest but we will invite the company (to participate in the tender),? he said.

He said that the tender for the purchase of HSD is expected to be opened in the first week of February 2007 and hopefully, PLN will start to receive the fuel in March or in April 2007 at the latest.

Alhilal said that it is unnecessary for PLN to pay the imported fuel to the suppliers in cash because several banks and financial institution have expressed their commitment to provide funds for the purchase of the fuel.

Alhilal expressed the hope that the procurement of fuel supply at cheaper price will help enhance the company?s working performance and increase its revenue.

PLN?s president director Eddie Widiono said that the company?s move to procure fuel outside Pertamina is in parallel with the direction set by shareholders who expected the company to improve its performance and raise its revenue.

Meanwhile, Pertamina?s director for marketing and trade Achmad Faisal said that Pertamina is ready to take part in PLN?s upcoming the tender for the purchase of fuel. ?We will take part in the tender. Up till now, we have not received an invitation,? he said.

Pertamina?s fuel division head Djaelani Soetomo added that Pertamina would join the tender provided that ?PLN pays its debt. Pertamina is ready to offer best price,? he said. (godang)