Biofuel on the News

Tuesday, January 30, 2007

12 foreign oil firms bid for PLN's oil procurement

The Jakarta Post - January 30, 2007
JAKARTA (JP): Twelve foreign oil companies have placed their bids in a tender held by the state-owned electricity firm (PLN) for the procurement of one million kiloliters (kl) of high speed diesel (HSD) to fire the company's power plants around the country, its chief commissioner says.

Alhilal Hamdi said that the 12 companies would enter the pre-qualification stage in February, so that the oil delivery would come on stream in April.

When asked the name of the companies, Alhilal only mentioned Malaysian oil company Petronas and refused to reveal the others.

The step taken by PLN to open the tender means that it will end up the monopoly of the state oil and gas Pertamina as the sole party, which supply oil for PLN.

Each year, PLN buys eight million kl to Pertamina in combination of HSD and fuel oil with industrial prices to fire oil-fired power plants, which accounts for 24 percent of its total plants.

"We can save up to Rp 500 (US$0.05) per liter if we buy the oil from other parties," PLN president director Eddie Widiono told reporters Monday on the sidelines of a meeting with the House of Representative.

The price set up by Pertamina is 14.5 percent higher than the oil price determined by the Mean of Platts Singapore (MOPS).

Eddie calculated that if the company were able to import all the oil supply, the company could save up to Rp 4 trillion per year. (ika)

Source: The Jakarta Post - Also posted online (


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