Three firms fail to pass verification on 2008 subsidized fuel distribution tender

Downstream oil and gas regulatory body, BPH Migas said on Friday that three out of six bidders for the 2008 distribution of subsidized fuels have failed to pass initial verification.

The three companies that did not pass verification are PT Shell Indonesia, PT Jasatama Petroindo (BP) and PT Total Indonesie, Head of BPH Migas Tubagus Haryono said, without providing details.

The three remaining companies - state oil and gas firm PT Pertamina, PT AKR Corporindo and PT Petronas Niaga Indonesia - are subject to next verification and hopefully, ?we will announce companies eligible to conduct 2008 public service obligation (PSO) on Monday,? he said.

BPH Migas Working Committee Chairman Dedi Wijaya told Petromindo.Com on Friday that the tender would be opened in early December to distribute 42 million kiloliters of subsidized fuel throughout 2008. He said that the Committee is still figuring out whether the winner(s) would be obliged to distribute fuel throughout Indonesia or only at certain designated areas.

Pertamina, which currently holds the de-facto monopoly over subsidized fuel distribution, has been considered the strongest candidate to win the tender as it has adequate storage and transport capacity, extensive distribution channels and years of experience.(godang)