Medco seeks approval to retender EPCI for Block A
Thursday, March 15 2012 - 12:26 AM WIB
PT Medco E&P Indonesia, a subsidiary of listed oil and gas company PT Medco Energi Internasional Tbk, has requested approval of upstream authority BPMIGAS to retender the engineering, procurement, construction and installation (EPCI) for Block A facilities in Aceh because there was only one bidder took part in the first bidding process, namely Chiyoda Corp of Japan.
?The request for retendering the EPCI for Block facilities has been submitted to BPMIGAS and preparations are continued. We need to retender the work so that the project can immediately start,? Manager Communications of Medco EP Indonesia, Joang Laksanto, told Petromindo.com.
Source of Petromindo.com who is familiar with the tender said that the price offered by Chiyoda was really high, reaching around US$1.7 billion for the Block A EPCI, far higher than the BPMIGAS estimation of around US$700-800 million.
Joang however declined to comment about the information when asked by Petromindo.com. He only hoped that the retender can be carried out soon.
The government last year extended the existing contract on the block for another 20 years. The block is 41.67 percent owned by Medco, which also acts as operator, in partnership with British firm Premier Plc (41.67 percent) and Japanese firm Japex (16.67 percent).
Editing by Roffie Kurniawan