Pertamina denies charge of unfair practice in West Seno tender
Tuesday, August 7 2001 - 03:05 AM WIB
Baihaki said in Jakarta on Monday that he saw no problem with the tender process for the installation of the oil field, which is developed under a production-sharing contract by Unocal.
?I am ready to clarify the issue,? he said, adding that he would soon meet members of the House of Representatives (DPR) and the Presidential office.
A number of legislators have accused Pertamina of conducting unfair practice in the tender, causing a potential loss of about US$30 million (about Rp 300 billion) to the state.
According to them, the state oil and gas company had unfairly selected local company PT Petrosea to carry out the $375 million project although its bidding was $30 million higher than that offered by one of its rivals.
Deputy chairman of the House AM Fatwa recently sent a letter to Pertamina to question the accusation.
Baihaki said that the problem should be settled because a delay in the project could cause a loss of about $60,000 per day to the state.
According to Baihaki, the tender for the installation of production facilities in the West Seno oil field was divided into two packages in a bid to involve small-scale companies in the project. The bidding for the first package was aimed at selecting a qualified company to carry out the whole jobs.
The second package, which was designed for small companies, was divided into two smaller parts. But none of bidders could pass the qualifications. (*)