{
    "success": true,
    "data": {
        "id": 1431140,
        "msgid": "cogeneration-plant-project-free-from-collusion-caltex-1447893297",
        "date": "1999-01-26 00:00:00",
        "title": "Cogeneration plant project free from collusion: Caltex",
        "author": null,
        "source": "JP",
        "tags": null,
        "topic": null,
        "summary": "Cogeneration plant project free from collusion: Caltex JAKARTA (JP): Oil company PT Caltex Pacific Indonesia has denied that it had formed a partnership with a company partly owned by a foundation linked with former state oil and gas company Pertamina's president Faisal Abda'oe to develop a US$190 million cogeneration plant in Duri, Riau.",
        "content": "<p>Cogeneration plant project free from collusion: Caltex<\/p>\n<p>JAKARTA (JP): Oil company PT Caltex Pacific Indonesia has<br>\ndenied that it had formed a partnership with a company partly<br>\nowned by a foundation linked with former state oil and gas<br>\ncompany Pertamina&apos;s president Faisal Abda&apos;oe to develop a US$190<br>\nmillion cogeneration plant in Duri, Riau.<\/p>\n<p>However, Caltex&apos;s president and chairman of the managing board<br>\nBaihaki Hakim refused to disclose the names of all the owners of<br>\nPT Nusagalih Nusantara, the local partner of Caltex&apos;s<br>\nshareholders-- Chevron and Texaco of the United States-- in<br>\ndeveloping the 300-Megawatt cogeneration plant.<\/p>\n<p>The cogeneration plant is being developed by PT Mandau Cipta<br>\nTenaga Nusantara, which received the project from Caltex without<br>\ncompetitive bidding.<\/p>\n<p>Nusagalih owns 5 percent of Mandau Cipta with the remaining 95<br>\npercent held by Chevron and Texaco.<\/p>\n<p>Informed sources at Pertamina said Nusagalih is controlled by<br>\nFeisal and the Serangan Umum 1 Maret foundation, which was once<br>\nchaired by Feisal and is linked with former president Soeharto.<\/p>\n<p>But Baihaki said Nusagalih&apos;s statutes name only Harsudi<br>\nSupandi as the owner.<\/p>\n<p>&quot;We didn&apos;t bother to find out who was behind him. The main<br>\nthing is that he has the money and capabilities to co-develop the<br>\nproject,&quot; Baihaki said, adding that Harsudi is a supplier of oil<br>\nproduction equipment for Caltex.<\/p>\n<p>But Minister of Mines and Energy Kuntoro Mangkusubroto said on<br>\nMonday he had instructed Director General of Oil and Gas<br>\nSoepraptono Soelaiman and Pertamina&apos;s president Martiono Hadianto<br>\nto probe into the dubious deal allegedly made by Caltex regarding<br>\nthe cogeneration plant project.<\/p>\n<p>A Caltex spokesman told The Jakarta Post last week Nusagalih<br>\nwas formerly co-owned by the Serangan Umum 1 Maret foundation but<br>\nHarsudi later took over its shares in order to control the<br>\ncompany.<\/p>\n<p>But, Baihaki said the statement was inaccurate, adding Caltex<br>\ndid not fully know the identity of the original owners of the<br>\ncompany.<\/p>\n<p>&quot;Presumption of corruption, collusion and nepotism in the<br>\nproject is definitely wrong,&quot; he said.<\/p>\n<p>Baihaki admitted that Caltex had awarded the cogeneration<br>\nplant project to Mandau Cipta without competitive bidding but he<br>\nsaid the deal was done with prior approval from Pertamina and was<br>\nprocessed through all the necessary channels.<\/p>\n<p>Pertamina had given its approval on Aug. 26, 1997 when Faisal<br>\nserved as Pertamina&apos;s president.<\/p>\n<p>He said under the existing regulation, an oil and gas<br>\ncontractor is allowed to award a project to a third party without<br>\ncompetitive bidding to speed up its development provided that the<br>\nproject does not reduce the government&apos;s earnings from the oil<br>\nand gas operations.<\/p>\n<p>He said Caltex had appointed Chevron and Texaco to develop the<br>\nproject because the companies had lengthy experience in the<br>\ndesign, construction and operation of cogeneration plants<br>\nspecifically built for high pressure steam flooding of oil fields<br>\nwhich Caltex is going to carry out in its Duri oil fields.<\/p>\n<p>Chevron and Texaco later formed a partnership with Nusagalih<br>\nto comply with the existing regulation which obliges foreign<br>\ninvestors to give 5 percent to a local partner.<\/p>\n<p>The country&apos;s largest cogeneration plant, scheduled for<br>\ncompletion in 2000, will supply power and steam to support oil<br>\nproduction at Caltex&apos;s steamflood operation in Duri.<\/p>\n<p>Cogeneration is a fuel-efficient and environmentally friendly<br>\nprocess that will produce electricity and steam simultaneously<br>\nfrom natural gas.<\/p>\n<p>Differing from a normal gas-fired power plant which can only<br>\nturn 30 percent of the gas into power and discharges the rest in<br>\nwasted energy, a cogeneration plant can produce power as well as<br>\nfurther process most of the wasted energy into thermal energy for<br>\nheating and cooling needs.<\/p>\n<p>The steam that will be produced at the Duri cogeneration plant<br>\nwill be pumped into the Duri oil wells to force crude oil flow<br>\nout. (jsk)<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/cogeneration-plant-project-free-from-collusion-caltex-1447893297",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}