Tighter scrutiny on tender winners: Susilo

By Peni Pedriawan

The government is working on a new directive that will tighten up the criteria for PSC bidders to win a tender for oil and gas working area, according to Deputy Minister of Energy and Mineral Resources Susilo Siswoutomo.

Susilo said the move was necessary because many winners had failed to meet their own commitment, from financial commitment such as signature bonus to operation commitment that includes a 3-year exploration obligation.

Of all 174 tender winners since 2001, only 10 have managed to proceed to process plan of development (PoD). ?Of the total, there were 20 to 30 contractors who have failed to even pay the signature bonus,? he explained.

Under the new directive, contractors will be more scrutinized especially in terms of their financial background, technological expertise and past experiences to be able to become the tender winner.

Even tighter scrutiny will be carried out, Susilo added, for deep sea projects due to their huge risk and costly exploration activities.

Editing by Dadan Wijaksana