Pertamina wants Caltex to lower cost of pump project
Thursday, February 21 2002 - 12:57 AM WIB
The state-owned oil and gas company Pertamina has demanded oil and gas contractor PT Caltex Pacific Indonesia (CPI) to lower the cost of its submersible pump project, according to the Tempo daily.
The paper quoted Pertamina president Baihaki Hakim as saying on Wednesday that if CPI could lower the cost, Pertamina would have to ask CPI to retender the project.
CPI recently completed a tender process for the submersible pump project. The cost of the project was initially set at US$130 million, but it later inflated to $150 million.
The financing of the project would come from the ?recovery cost fund,? which would affect the government?s oil and gas revenue portion.
Baihaki said that Pertamina was currently awaiting for the response of CPI.
The country?s anti-monopoly watchdog KPPU had also earlier accused CPI for conduction tender which was not transparent.(*)