Petronas holding tender on Kepodang field

Monday, June 11 2012 - 09:44 AM WIB

By Bernard Loebs

Petronas Carigali, the upstream unit of Malaysian firm Petronas Bhd, is holding a tender on the development of production facilities for Kepodang field in Muria block, offshore Central Java, according to a senior official of upstream authority BPMIGAS

?The tender process is in progress,? Rudi Rubiandini, BPMIGAS? Operational Control Deputy, said, adding the winner of the tender should be known by the end of this year ?so that the development of the facilities can start next year in line with the production target of 2014.?

Petronas has agreed to deliver gas from Kepodang to the Tambak Lorok power plant in Semarang, owned by state owned electricity firm PT Perusahaan Listrik Negara (PLN) starting late 2014.

Petronas had decided to launch the tender after recently holding discussions with officials from the Bakrie Group and the Ministry of Energy and Mineral Resources, Rudi said, adding the discussions aimed to make sure that Bakrie will build the pipeline that will deliver gas from Kepodang to Tambak Lorok on time.

The government has awarded Bakrie & Brothers, which is controlled by the politically-powerful rich Bakrie family, to build the around 200 km Kepodang-Tambak Lorok pipeline after the firm claimed it should be categorized as part of the East Kalimantan-Central Java pipeline which it had won the right to build.

Editing by Johannes Simbolon

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