Habibie letter confuses Natuna project parties
Habibie letter confuses Natuna project parties
JAKARTA (JP): A letter sent by President BJ Habibie's close
aide has drawn conflicting interpretations over the President's
policy on the contract awarded to PT McDermott Indonesia for the
construction of the natural gas pipeline connecting the area west
of Natuna island and Singapore.
Legislators said the letter sent by the secretary for
development operation control (Sesdalopbang), Sintong Pandjaitan,
indicated that Habibie supported the idea of retendering the
project to end the controversy revolving around the selection of
McDermott.
"To be honest, the letter is confusing. But the letter appears
to indicate Habibie wants the appointment of McDermott to be
canceled," legislator Hari Salman Farizi Sohar told The Jakarta
Post.
But state oil and gas company Pertamina said the letter
indicated Habibie supports Pertamina's decision to approve
McDermott for the project.
"For us, the letter clearly shows that the President supports
the selection of McDermott," Pertamina foreign contractor
management body (BPPKA) spokesman Sidick Nitikusuma told The
Post.
Sesdalopbang, which is not part of the Cabinet, serves as a
close aide to the President.
Pandjaitan sent the letter on Aug. 30 to Minister of
Justice/State Secretary Muladi, Minister of Mines and Energy
Kuntoro Mangkusubroto and Minister of Finance Bambang Subianto,
as a reply for the letter sent by Pertamina president Martiono
Hadianto on Aug. 20.
"We hereby inform the instructions of the President ... that
the West Natuna gas project should be continued on schedule as
determined in an open and transparent bidding so that the winner
of the bidding is free from the elements of corruption, collusion
and nepotism (KKN)," Pandjaitan said in the letter.
Copies of the letter were sent to Habibie and Martiono.
McDermott, a subsidiary of American construction firm J Ray
McDermott SA, won the project with the lowest bid of US$335
million.
The 560-kilometer underwater pipeline will be used to
transport natural gas to Singapore from the gas fields developed
by three of Pertamina's contractors: Premier Oil of Britain, Gulf
Resources of Canada and Conoco Inc. of the United States.
House of Representatives Commission V for mines and energy
recently recommended the government cancel McDermott's contract
after finding irregularities in the bidding process for the
project.
The commission charged McDermott with benefiting from insider
information to win the project, but McDermott strongly denied the
charge.
The commission recommended the government transfer the
contract from McDermott to one of its competitors: Italian firm
Saipem, French firm ETPM or Japanese firm Nippon Steel.
The House board of leaders approved the recommendation and
sent it to Kuntoro on Aug. 31. (jsk)