'Pertamina becomes the victim of BP?s failure'

State owned oil and gas company Pertamina has become the innocent victim of the failure of the world?s oil giant BP Indonesia in fulfilling its commitment to supply 60 million cubic feet per day (MMCFD) of natural gas in East Java, Kompas reported on Friday.

The failure of BP to meet its commitment had forced Pertamina to provide extra fuel supply to substitute the natural gas used to be supplied by BP to local companies including Gresik steam power plant and fertilizer producers Petrokimia Gresik.

"BP should carry out a routine audit on its gas pipeline so that a leakage could be prevented," Pertamina?s spokesman Ridwan Nyak Baik. According to him, the leakage of the gas pipelines through which BP supplies its natural gas to its customers is only a kind of tricks so that the government will extend its contract.

BP, whose contract will actually ends in 2010 has demanded the government to extend the contract before the current term ends. According to Pertamina, BP had showed no good intentions at all because the company would increase its investment only if the contract is extended.

BP has stopped the gas supply due to a leakage in its pipeline but the chairman of BPMIGAS Rachmat Sudibyo ruled out any foul play in the supply of the natural gas from BP?s oil gas fields. "From the video scene, I see a gas bubble coming out from the pipeline, and this could pose a danger." Rachmat said that the gas supply from BP?s fields could not be immediately replaced by nearby gas producers such as Amerada Hess, Santos and Lapindo Brantas because they would only start their production after 2005. (*)