Pertamina denies Kuntoro's claim about Natuna project
Pertamina denies Kuntoro's claim about Natuna project
JAKARTA (JP): State oil and gas company Pertamina defended on
Monday its final decision on the underwater Natuna pipeline
project, despite a grumble from the mines and energy minister.
The spokesman for Pertamina's foreign contractors management
body, Sidick Nitikusuma, denied the allegation by minister
Kuntoro Mangkusubroto that the company had not consulted the
ministry in making the final decision.
Sidick said Pertamina had sent a report to Kuntoro prior to
giving approval to the selection of PT McDermott Indonesia as the
contractor for the construction of the natural gas pipeline
connecting the fields west of the Natuna islands with Singapore.
"Pertamina sent a report (to the minister) on May 7, 1999, to
explain the progress of the tender for the construction of the
natural gas pipeline held by the West Natuna Gas consortium.
"And (in the report) Pertamina nominated McDermott as the
winner of the tender," Sidick said.
Pertamina's president, Martiono Hadianto, approved the
selection of McDermott on May 14, one week after sending the
report.
After the selection was made, Kuntoro expressed his
disappointment, saying he had not been consulted by Pertamina
over the matter.
"I only learned about the final decision from the newspaper."
Kuntoro said.
He acknowledged that Pertamina was not obliged by law to
report the tender's result to him, but said the company was
morally obliged to do so because the project had become a public
controversy.
Kuntoro sent a letter to Pertamina last Tuesday asking for a
report of the tender process and of former president Soeharto's
golfing partner Mohammad "Bob" Hasan's interests in McDermott
Indonesia.
In answering Kuntoro's letter, Sidick said, Pertamina again
sent a report to Kuntoro last Friday explaining the process that
led to the selection of McDermott for the construction of the
project.
According to Pertamina's evaluation, Sidick said, the tender
for the giant project had been transparently conducted by the
West Natuna Gas consortium.
He said the consortium selected McDermott as it presented the
lowest bid, at US$265 million, undercutting its competitors
France's ETPM, Italy's Saipem and Japan's Nippon Steel.
The consortium comprises the United States's Conoco, Britain's
Premier Oil and Canada's Gulf Resources, which have signed
contracts with Pertamina to develop gas fields in the South China
Sea.
Pertamina made a deal early this year to supply natural gas
from the consortium's gas fields in Natuna to Singapore's
Sembawang Gas (SembGas) through a 650-kilometer underwater gas
pipeline for 22 years starting from 2001.
Several legislators, dismissing the tender process as smacking
of KKN (collusion, corruption and nepotism), believed the
consortium had intentionally helped McDermott to win the tender.
But Sidick said there was no evidence to indicate that the
consortium had given special treatment to McDermott.
McDermott was in the past affiliated to Bob Hasan, but Sidick
said there was no evidence indicating it had received favor due
to the affiliation.
"It needs to be emphasized that (awarding a tender to) an
economic unit or legal entity owned by friends of officials could
not be categorized as being practicing KKN as long as it doesn't
receive special facilities," Sidick said, referring to the decree
issued by Coordinating Minister of Developmental Supervision and
Administrative Reform Hartarto Sastrosoenarto in 1998.
Sidick also said Pertamina had received a statement from
notary public R. Arie Soetardjo last year stipulating that Bob
Hasan had resigned as McDermott's commissioner on March 16, 1998.
"McDermott Indonesia has also informed us that Bob Hasan is
offering its shares for sale but the negotiation for that purpose
is now in progress.
"But, it is beyond Pertamina's authority to ask about the
acquisition process and to whom Bob Hasan's shares are being
offered," said Sidick. (jsk)