Pertamina Elected as Fuel Distributor in 2009

VIVAnews - The government entrusts Pertamina to distribute subsidized fuel in 2009 after eliminating five other companies.

Head of Downstream Oil and Gas Agency (BPH Migas) Tubagus Haryono said that Pertamina is deemed the most prepared oil and gas company. 

"We have agreed on the administrator of public service obligation (PSO). The decree as well as the terms and conditions are being prepared," he said through SMSes on Monday, Dec 22.

According to Haryono, the decree is being discussed and may be issued today, Dec 23.

To subsidize fuel, BPH Migas had invited companies in the oil and gas industry to participate in the tender.

As many as 27 companies had stated their interests in distributing oil. After submitting their proposals, eight out of the 27 were selected. At the final stage, only six out of the eight companies were selected including Petronas, Shell, PT Aneka Kimia Raya Coorporindo Tbk (AKRA), Bumi Asri Prima Pratama, Trans Pacific Petrochemical Indonesia (TPPI) and Pertamina. 

Two other companies, Petrobas and Patraniaga, retreated from the tender during the final stage.

Translated by: Bonardo Maulana Wahono