Pertamina rejects new demand to disqualify PT McDermott Indonesia
Tuesday, March 7 2000 - 04:00 AM WIB
Newly-appointed president of the state oil and gas firm Pertamina Baihaki Hakim turned down on Monday a renewed demand from legislators to disqualify PT McDermott Indonesia as the contractor of the gas pipeline connecting the West Natuna Island and Singapore.
Speaking in a hearing session with the House of Representatives commission VIII on mining and energy, Baihaki said that the disqualification would delay the pipeline project which in turned would cause trouble for Indonesia, pointing out to the more than US$31.3 million for the delay of the project.
The House has demanded Pertamina to disqualify McDermott since 1998 on grounds that the company won the deal on alleged nepotism, collusive and corrupt practices. McDermott Indonesia is partly owned by Mohamad Bob Hasan, the long-time golfing partner of former president Soeharto.
Baihaki said that the gas pipeline project has started since January 19, 2000. The pipeline now already approaches the Bintan Island.
He said that the pipeline is expected to be completed in December this year or 3-4 months earlier than the schedule.(*)