Arco retender plant's design

Arco retender plant's design

HOUSTON (Reuters): Atlantic Richfield Co. said it had asked companies to submit new bids for the design of a liquefied natural gas (LNG) plant in Indonesia worth about US$4 billion.

The contract was originally awarded to Inti Karya Persada Teknik (IKPT), but an Arco spokeswoman said the U.S. oil company had decided to start a new bidding process following the recent change of government in Indonesia.

IKPT, which is controlled by Bob Hasan, a close friend of former Indonesian president Suharto, will be eligible to bid again for the construction of the plant, which is part of the Tangguh project to liquefy Indonesian natural gas for export.

The Arco spokeswoman said the new bidding process would not lead to any delay in the planned starting date for the plant, which was still expected in late 2004.