PGN extends strategic partner bid submission deadline
Thursday, February 14 2002 - 03:27 AM WIB
PGN said the extension was necessary since only one out of four bidders was willing to submit the bid on the original schedule.
?Three other bidders ask for extension since they would need more time to coordinate among consortia members,? WMT Simanjuntak, PGN?s president told reporters.
Due to the deadline extension, said Simanjuntak, the winning bidder announcement would also be delayed until April 15. PGN was originally scheduled to announce winner at the end of February.
Simanjuntak assured that the delay would not affect the construction of South Sumatra-Singapore pipeline, which was scheduled to commence in June this year and would start first gas delivery to Singapore in mid-2003.
However, industry source told Petromindo.Com that Singapore gas buyer and several South Sumatra gas producers had expressed concern that PGN might not be able to complete pipeline construction in time.
The source also said that PGN had already asked the government to provide guarantee should strategic partner selection fail. According to the source, government guarantee would enable PGN to secure US$ 100 million loan from Bank Mandiri and would keep the construction project going.
PGN is offering a 25 percent to 40 percent stake to strategic partner in PT Transgasindo, a newly formed subsidiary that will develop and operate South Sumatra-Singapore via Batam gas pipeline. Transgasindo is also operating the Grissik-Duri pipeline that supplies gas from Southern Sumatra to Caltex Pacific Indonesia?s steam flood facilities in Riau. The sale is expected to raise US$250 million for the construction South Sumatra-Singapore pipeline.
Four consortium of bidders led by Conoco Inc, Unocal Corp., Petronas and Singapore Petroleum had reportedly been selected as second round bidders. (alex//godang)