Manado (TheInsiderStories) - The largest energy company in Indonesia, PT Pertamina wants to expand more to global market through acquisition plans, said the president director. The state-own firm prepared investment up to US$1.5 billion for this plans.
Dwi Sutjipto, the president director explained, Pertamina wants to increase stake in French’s oil & gas Mauriel and Prom (MNP) and also seeks to acquire block in Algeria. Previously Pertamina has acquired 24.53 percent shares of MNP from Pacifico.
According to Vice President Ahmad Bambang said has plans to acquire Spain’s integrated global oil company Repsol SA shares on the field Menzel Lejmat North (MLN), Algeria. The action is part of the company program to make acquisitions in the oil and gas fields abroad.
Dwi continues, On February 2017, He added, Pertamina also plans to take over part of shares of Pertamina also wants two acquire two oil & gas blocks own by the National Iranian Oil Company (NIOC) and also in Russia.
Pertamina and NIOC has signed liquid petroleum gas (LPG) contract 88.000 tonnes in 2016 and agreed to explored the development of oil & gas projects in the future. Signing of the LPG contract with Tehran is a turning point and the first step towards enhancing cooperation between Iran and Indonesia.
Based on the agreement, Pertamina had six months to conduct a study and submit a preliminary proposal on further development of both onshore field which has reserves of more than 5 billion barrels.
Dwi stated, overal for 2017, Pertamina prepared total investment $6.6 billion, which is for upstream of $3.5 billion, $1.5 billion for international expansion and $2 billion for the financing of development in Indonesia.
The financing of the investment, He said, 40 percent comes from equity and 60 percent from loans either in the form of project loans, bonds issuance and securitization.
“We will start the developing of our refinery in Balikpapan (groundbreaking Q1), Tuban (Q3) and Cilacap (Q4). To finance the Balongan projects, we will review and will invite investors to do it and is also open to offer build of transfer (BOT) system,” said Dwi.
In term of revenues, He said, the amount will rose as oil prices rise but the pressure of the fuel prices and the dealing with the selling power of public purchasing will affect the results. On the bottom line side, Dwi expected to grow in the range of 5 to 10 percent from this year target.