Pertamina to retender fuel terminal project in East Java

State owned oil and gas company Pertamina will retender the construction of a fuel terminal to be built in Tuban, East Java because the price offered by the existing bidders are far higher than its own estimate.

Hanung Budya, deputy director for Pertamina?s marketing said in Jakarta last week that the prices offered by the bidders for the fuel terminal project which would be used to increase fuel stocks for East Java was more than 10 percent higher than Pertamina?s estimate.

?It is too expensive. So, we will retender the project,? he was quoted as saying. He, however, said that the retender would not change the construction schedule of the project.

Hanung said that the fuel terminal which had been delayed because an increase in the construction cost was expected to begin operation next year as scheduled despite the retender.

Participants of the previous tender can participate in the new tender process which is to be held this month, Hanung said, without naming the participants.

In January 2007, Pertamina?s president Ari H. Soemarno said the storage with a capacity of 3 million tons will be equipped with loading and uploading facilities.

Pertamina earlier estimated the construction of the oil terminal would cost about $100 million. (*)