Pertamina to determine winners of tender to fund Cepu Block

State oil and gas firm PT Pertamina said it would determine the winners of tender for funding the development of Cepu Block in early November following the completion of due diligence by the bidders.

Pertamina's director for finance Frederick T. Siahaan in Jakarta Friday that the company provided an opportunity for the invited companies for completing their due diligence within two months starting Early September until by the end of October.

Frederick made the remarks on the sidelines of a visit by Vice President Yusuf Kalla to the company in Friday.

At least 40 financial institutions from at home and abroad have been invited by Pertamina to participate in the tender in mid August of this year.

According to Frederick, Pertamina will select proposal that will be advantageous to the company following the completion of the due diligence. "We will select the most attractive proposal," he said.

He said that as the government owned participating interest in the Cepu Block, the government should provide US$600 million to finance the project. "We need an investment of up to US$600 million. The ongoing 'beauty contest' is one of our ways to securing the funds," he said.

Invited financial institutions include local state-owned banks like Bank Mandiri and overseas banks like Credit Suisse First Boston (CSFB). Other financial institutions such as BNP Paribas also joined the contest. (godang)