Purnomo to summon BPMIGAS boss over condensate controversy

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said that he would soon summon the chairman of BPMIGAS to clarify a growing controversy over the tender of condensate from Arun and Bontang LNG plants, Koran Tempo reported on Saturday.

Purnomo said that he would seek explanation from the chairman of BPMIGAS about the procedures of the tender it held in selling the condensate from the two LNG plants and to find out whether or not the tender was carried out transparently.

BPMIGAS, the government?s agency which is in charge of the country?s oil and gas exploration and production activities, appointed two Singaporean companies Novaco and Gold Manor as the buyers of the condensate produced by Arun and Bontang LNG plants. The price is floated to an international crude oil price, plus a premium of 10 US cent for every barrel of condensate sold.

The tender has, however, stirred a controversy after Pertamina said that it was not invited in the auction.

Pertamina?s public and government relations manager Ridwan Nyak Baik said that Pertamina would have been able to offer a premium of 25 US cent for every barrel of condensate or 150 percent higher than those offered by the Singaporean companies, if the state owned oil and gas producer was invited to take part in the bidding.

But BPMIGAS denied the charge that Pertamina was not invited in the tender.

Deputy Chairman of BPMIGAS for marketing and economy Edi Purwanto said Pertamina was invited to join the tender through its subsidiaries Petral or Pertamina Energy Trading Limited. "So it was not true if Pertamina was not invited," he said. (*)