ARCO's deal with Circle questioned<\/p>\n
JAKARTA (JP): State oil and gas company Pertamina said on
\nFriday it would question the Indonesian unit of American oil and
\ngas company Atlantic Richfield Company (ARCO) over the
\ntransportation and logistics contracts it awarded to American
\nservice company Circle International Group Inc.<\/p>\n
\"We shall check with ARCO to see if it awarded the contract in
\na process consistent with prevailing regulations,\" the spokesman
\nfor Pertamina's foreign contractors management body, Sidick
\nNitikusuma, told The Jakarta Post on Friday.<\/p>\n
Sidick said presidential decree No. 16\/1994 on the
\nimplementation of the state budget stipulated that oil and gas
\ncontractors should hold tenders for their projects in Indonesia.<\/p>\n
Under the presidential decree, foreign companies are allowed
\nto participate in the tender process but priority is given to
\nIndonesian companies and foreign companies which have
\nrepresentatives in the country.<\/p>\n
\"The question is, does Circle have representative here,\"
\nSidick said.<\/p>\n
Dow Jones reported on Friday that Circle received a multiyear
\ncontract from ARCO, one of Pertamina's foreign partners, to
\nprovide full-service global transportation and logistics services
\nfor ARCO's upstream international oil and gas operations.<\/p>\n
Circle said in a press release that the contract would
\ngenerate four million kilograms of ocean freight, 750,000 kilos
\nof air freight and customs brokerage and logistics services
\nrevenue annually.<\/p>\n
Circle claimed it had begun managing the movement of materials
\nand equipment to ARCO's field operations in Algeria, and it would
\nadd services to China, Indonesia and other sites in the coming
\nmonths, as well as managing the import of geological samples.
\n(jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/arcos-deal-with-circle-questioned-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}