Pertamina awaits Caltex?s explanation in tender controversy

State-owned oil and gas company Pertamina is waiting for an explanation from production-sharing contractor PT Caltex Pacific Indonesia on controversies over the alleged manipulation in the pricing of the oil giant?s submersible pipeline project, Republika reported on Wednesday.

Some members of the House of Representatives have accused Caltex with manipulating the cost of the pipeline project by marking up the project value from only US$130 million to $230 million without the consent of Pertamina.

The increase in the spending for the project would cause a great loss to the government, because all the spending made for production, exploration or other related purposes should be covered by Pertamina.

Spokesman for Pertamina?s Production-Sharing Management, A. Siddick Nitikusuma, said in Jakarta on Tuesday that the state owned oil and gas company was still waiting for the answer from Caltex about its inquiry related to the alleged manipulation in the cost of the pipeline project.

But Minister of Energy and Mineral Resources Purnomo Yusgiantoro said that he was not aware about the alleged manipulation. ?I don?t know the problem. It is the problem of Pertamina and his production sharing contractor," he said.

The chairman of the House?s Commission VII Irwan Prayitno said that mark-up practices were still common in oil and gas ?related operations despite Pertamina?s commitment to get rid of corruption.

?We are in difficult situation in dealing with such cases. If we raise the issue, the people could then say that we get something from those who we defend,? he said. (*)