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Mitsubishi sticks with Donggi-Senoro project
Japan's Mitsubishi Corp
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Japan's Mitsubishi Corp. says it will continue its involvement in the Donggi Senoro LNG plant (DSLNG), despite the government's ruling that all gas from the operation be sold on the domestic market.
"We are not in the position to provide comments on the government's remarks," Mitsubishi spokesperson Shunsuke Nanami stated.
"However, we will be continuously cooperating with the partners of the project as well as the Indonesian government and upstream parties so that the FID *final investment decision* can be made at an early stage," Nanami told The Jakarta Post in an email.
Nanami added Mitsubishi aims to contribute to Indonesia through this project.
Mitsubishi Corp holds a 51 percent participating interest in DSLNG. Pertamina and Medco hold 29 and 20 percent stakes respectively.
Mitsubishi's major stake in the project is required by potential lender for the project, the Japan Bank for International Cooperation (JBIC), Pertamina president director Karen Agustiawan told lawmakers on May 25.
Mitsubishi's participation in the project has however, been the subject of a dispute with joint venture company PT LNG Energy Utama (LEU).
Three months ago, LEU, which was one of Mitsubishi's competitors in the tender, filed a report to the Business Competition Supervisory Commission (KPPU), claiming Mitsubishi had made an artificial offering to win the project.
But two weeks ago the KPPU ruled in favor of Mitsubishi, saying it did not find any indication of the artificial offering in the project.
LEU is equally owned by Australia's LNG International and domestic company PT Maleo Energi Utama, which is owned by Hariyanto, a businessman from Central Sulawesi. (JP/Alfian)
