NEW PRESIDENT DIRECTOR EXPECTED TO OPTIMIZE PERTAMINA'S TEAMWORK

By Andi Abdussalam

Jakarta, March 17 (Antara) - The newly appointed President Director of PT Pertamina, Elia Massa Manik, is expected to optimize teamwork at the state-owned oil and gas company.          Pertamina needs a leader, who is able to achieve teamwork, and not individual productivity. Thus, he should build communications on all lines. Good teamwork can be built with mutual trust and trust can only be built with good communications.          Elia should build communication among the management, the board of directors and board of commissioners so that it becomes easier for the company to execute its programs.          "So far, teamwork at Pertamina has not been optimal so the board of commissioners had proposed the restructuring of the organization and the leadership," Pertamina Chief Commissioner Tanri Abeng said in Jakarta on Thursday.          Recently, State-owned Enterprises Minister Rini Soemarno had picked Elia as president director of Pertamina to replace Dwi Soetjipto, who was discharged on February 3.          Appointed to the post of Pertamina's President Director, based on State Enterprises Minister's Decree No. SK-52/MBU/03/2017, Elia had earlier held the post of president director of state-owned plantation holding company PT Perkebunan Nusantara (PTPN) III.

PERTAMINA EXPECTED TO EXPAND BUSINESS IN SAUDI ARABIA

By Andi Abdussalam

Jakarta, March 2 (Antara) - Indonesia's state-owned oil and gas firm PT Pertamina is expected to expand business in aircraft fuel sale to Saudi Arabia and cooperate with Saudi firm Aramco in the development of oil refinery plants in Indonesia.          The expectation for Petamina to make investment in Saudi Arabia was expressed by the Ministry of Energy and Mineral Resources (ESDM) on Wednesday, amidst the ongoing visit of Saudi King Salman bin Abdulaziz al-Saud in Indonesia from March 1 to 9, 2017.          Witnessed by King Salman and Indonesian President Joko Widodo (Jokowi) Indonesia and Saudi Arabia signed 11 agreements in the form of memorandums of understanding (MoU) on Wednesday, among others on development funding and civil aviation.          Director General of Oil and Gas of the ESDM Ministry, IGN Wiratmaja hoped that Pertamina would invest in Saudi Arabia, among others on aircraft fuel sale in that country.          "We will continue to encourage cooperation. It should not happen that only Saudi Arabia makes investment in Indonesia, but Indonesia, in this case Pertamina, should also expand aircraft fuel sale to Saudi Arabia," Wiratmaja said in a discussion at the Oil and Gas Building in Jakarta on Wednesday.

PERTAMINA MULLING COOPERATION DEAL WITH ARAMCO

By Andi Abdussalam

Jakarta, Sept 26 (Antara) - State-owned oil company Pertamina is evaluating the aspects of a proposed collaboration with Saudi oil company Aramco, which has committed to invest US$10 million in Indonesia.          Pertamina Corporate Secretary, Wisnuntoro said in Surabaya, East Java, on Saturday that his company is studying several aspects of the deal that has been proposed by Aramco, adding that Pertamina hopes to find a solution that could benefit both sides.          "We are studying several points proposed under the cooperation. Aramco wants certain provisions to be included in the deal, such as a tax holiday for a period of 20 years. They are also interested in doing business in the downstream sector," said Wisnuntoro, after a discussion on maritime and energy business.          Earlier, the Director General of Natural Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM), I Gusti Nyoman Wiratmaja Puja, had said that Aramco is also keen on investing in the downstream sector.          "Aramco is not only interested in oil refinery and storage, but also in the downstream sector," Gusti said on September 14.

PERTAMINA TO REFORM OIL BUSINESS, INCREASE PRODUCTIVITY

By Andi Abdussalam
Jakarta, Dec 2 (Antara) - State-owned oil and gas company Pertamina is expected to carry out reforms in the oil sector and increase productivity under its new President Director Dwi Soetjipto.          "We hope the new Pertamina chief will be committed to reforming the oil sector, increasing productivity and fighting the oil and gas mafia in the country," Sofyan Zakaria, the director of Puskepi, a non-governmental organization advocating pro-public policies, said.      He stated that a president director of PT Pertamina must have strong leadership qualities, reliable managerial capabilities, high integrity, honesty and commitment to help the government fight oil and gas mafia.          Observing that Dwi Soetjipto seems to have met all the requirements, Sofyan said Dwi may possibly not command oil and gas technicalities but other directors and the senior vice-president of Pertamina, whose expertise has already been proven, can help him there.         "I hope Dwi will carry out Pertamina's transformation," he remarked.          State Enterprises Minister Rini M Soemarno installed Dwi Soetjipto as president director of Pertamina for the 2014-2019 period last Friday.

OIL, GAS MANAGEMENT NEEDS DEFINITE REGULATOR

By Andi Abdussalam

Jakarta, Dec 21 (ANTARA) - Observers have suggested that the government should appoint a definite state institution to handle the country's oil and gas business after the Constitutional Court (MK) dissolved last month the Upstream Oil and Gas Regulator (BP Migas).          In the wake of the dissolution of the BP Migas on November 12, the government set up the Interim Working Unit for the Implementation of Upstream Oil and Gas Activities (SKSP Migas), under the Ministry of Energy and Mineral Resources, which took over the functions of BP Migas.          However, SKSP Migas is an interim body and must be replaced by a state-owned entity that should exclusively handle upstream oil and gas activities. The role of BP Migas is expected to be taken over by state-owned oil and gas company Pertamina.          "The dismantled BP Migas, whose role is being taken over by the SKSP Migas, should be replaced by Pertamina, as per the rules of the Constitution," said Marwan Batubara, the executive director of Indonesian Resources Studies, on Thursday.

PERTAMINA'S ACQUISITION OF MEDCO TO RAISE ITS OIL OUTPUT

By Andi Abdussalam

Jakarta, Nov 11 (ANTARA) - State-owned oil and gas company Pertamina's plan to acquire PT Medco Energi International is hailed by many quarters, including legislators, as a strategic step to reinforce its business in the upstream sector and increase its oil production.          "Medco's acquisition has the potential to benefit Pertamina because Medco has a number of potential oil fields at home and abroad that could raise Pertamina's oil output and national oil production," Dito Ganinduto, a member of the House of Representatives (DPR)'s Commission VII on energy affairs, said.          The same opinion is also voiced by Pri Agung Rakhmanto, executive director of ReforMiner Institute, who viewed Pertamina's move to acquire Medco as a strategic step. He said that the plan was a business strategy being developed by Pertamina to increase its oil output.          This step will have positive impact on the government's oil production target of 1 million barrels per day in 2015. After all, Pertamina and Medco are two oil and gas firms which are trying to build themselves into a world class firm.          Pertamina and Encore International Limited (EIL) have signed a principle of agreement as part of the step for Pertamina to purchase the EIL stake at Encore Energy Pte Lted ((EEPL). EEPL owns 50.7 percent shares at Medco Energi International. With the acquisition, Pertamina will automatically control 27.9 percent of Medco shares.          The two sides have agreed to continue the sale purchase of EIL shares at EEPL to an exclusive phase which would end on November 30, 2010.          Medco is recorded to have oil blocks at home and abroad. At home it has ones in South Sumatra, Sembakung oil Block, Tiaka Oil Block, the Lematang and Senoro gas fields as well as Blcok A gas field in Aceh. It also has 12 oil drilling wells abroad, among others in the United States, Yemen, Cambodia, Libya, Tunisia and Oman.          Medco's oil output as of August 2010 reaches 30,974 barrels per day which exceeds its annual target of 29,690 barrels per day.          Pertamina's  Vice President for Corporate Communications, Mochamad Harun, said his company's step to acquire Medco was part of the efforts to achieve the target of 1 million barrels of oil equivalent per day (boepd) in 2015.          "We have the target to produce up to 1 million boepd in 2015. For this, Pertamina could not merely rely on existing fields but also on the ways of merger and acquisition," he said.          He said that Pertamina would have additional output of about 10 thousand barrels per day with the acquisition of Medco.          However, Pertamina was suggested to also purchase Medco's oil blocks if it wanted to effectively raise its  output. Director of the Center for Public Studies Research (Puskepi) Sofyan Zakaria,  said that the acquisition of Medco was not a too precise step.          "The acquisition of the shares would not directly raise Pertamina's oil production. This is unlike if it purchases the oil field," he said.          The purchase of the shares meant that Pertamina would also bear the debts of Encore.  "Because what were purchased were corporate shares, all responsibilities and burdens will also become the burdens of the shareholders," the Puskepsi director said.          Yet, legislators supported the acquisition plan by Pertamina.  "The acquisition plan is a corporate action of both sides. I support the step because it would lead Pertamina to become a global player in the world oil business," Achmad Ferial, another member of the House Commission VII, said on Thursday.          He said that through the acquisition process, Pertamina could increase its performance and supports its transformation into a reputable company in the world. However, the acquisition should guarantee that Pertamina would be able to increase its oil and gas production in the future.          Legislator Dito Ganindito, also of Commission VII, said Pertamina's plan to acquire Medco needed support.  He said that if it acquired Medco, Pertamina would obtain not only supply for increasing its production capacity but also dividends from the acquisition.          "So, the chance for Pertamina to become a world class oil and gas company would soon become a reality," Dito, who hailed from the Golkar Party faction, said.          Pertamina is now surrounded by foreign oil firms which dominate the oil business in Indonesia. Exxon Mobil, Shell and British Petroleum are foreign firms which control most of the country's oil fields. Malaysia's Petronas which could be said to have learned its experience from Indonesia is now more progressive than Pertamina.          Therefore, it is now time for Pertamina to become a main player in the oil business. If this expectation is fulfilled, Pertamina would become a strong firm to compete in the world market.          There are many strategies that could be applied by Pertamina to fulfill the expectation, among others through the acquisition of Medco, he said.          Vice President for Corporate Communications of Pertamina, Mochammad Harun said Pertamina's hope for becoming a world class firm needed support. The immediate target it has to realize is to achieve its target of 1 million barrel production per day, at least in 2015.          Pertamina could achieve the target if it maximizes its oil and gas  upstream production capacity. The upstream sector would serve as Pertamina's growth center, he said.          "We have the target to produce one million barrels of oil per day in 2015," he said.      (T.A014/A/HAJM/21:59/a/R013) 11-11-2010 22:15

PERTAMINA'S ACQUISITION OF MEDCO TO RAISE ITS OIL OUTPUT

BY ACQUIRING MEDCO, PERTAMINA'S OIL OUTPUT TO RISE By Andi Abdussalam

Jakarta, Nov 11 (ANTARA) - State-owned oil and gas company Pertamina's plan to acquire PT Medco Energi International is hailed by many quarters, including legislators, as a strategic step to reinforce its business in the upstream sector and increase its oil production.          "Medco's acquisition has the potential to benefit Pertamina because Medco has a number of potential oil fields at home and abroad that could raise Pertamina's oil output and national oil production," Dito Ganinduto, a member of the House of Representatives (DPR)'s Commission VII on energy affairs, said.          The same opinion is also voiced by Pri Agung Rakhmanto, executive director of ReforMiner Institute, who viewed Pertamina's move to acquire Medco as a strategic step. He said that the plan was a business strategy being developed by Pertamina to increase its oil output.          This step will have positive impact on the government's oil production target of 1 million barrels per day in 2015. After all, Pertamina and Medco are two oil and gas firms which are trying to build themselves into a world class firm.          Pertamina and Encore International Limited (EIL) have signed a principle of agreement as part of the step for Pertamina to purchase the EIL stake at Encore Energy Pte Lted ((EEPL). EEPL owns 50.7 percent shares at Medco Energi International. With the acquisition, Pertamina will automatically control 27.9 percent of Medco shares.          The two sides have agreed to continue the sale purchase of EIL shares at EEPL to an exclusive phase which would end on November 30, 2010.          Medco is recorded to have oil blocks at home and abroad. At home it has ones in South Sumatra, Sembakung oil Block, Tiaka Oil Block, the Lematang and Senoro gas fields as well as Blcok A gas field in Aceh. It also has 12 oil drilling wells abroad, among others in the United States, Yemen, Cambodia, Libya, Tunisia and Oman.          Medco's oil output as of August 2010 reaches 30,974 barrels per day which exceeds its annual target of 29,690 barrels per day.          Pertamina's  Vice President for Corporate Communications, Mochamad Harun, said his company's step to acquire Medco was part of the efforts to achieve the target of 1 million barrels of oil equivalent per day (boepd) in 2015.          "We have the target to produce up to 1 million boepd in 2015. For this, Pertamina could not merely rely on existing fields but also on the ways of merger and acquisition," he said.          He said that Pertamina would have additional output of about 10 thousand barrels per day with the acquisition of Medco.          However, Pertamina was suggested to also purchase Medco's oil blocks if it wanted to effectively raise its  output. Director of the Center for Public Studies Research (Puskepi) Sofyan Zakaria,  said that the acquisition of Medco was not a too precise step.          "The acquisition of the shares would not directly raise Pertamina's oil production. This is unlike if it purchases the oil field," he said.          The purchase of the shares meant that Pertamina would also bear the debts of Encore.  "Because what were purchased were corporate shares, all responsibilities and burdens will also become the burdens of the shareholders," the Puskepsi director said.          Yet, legislators supported the acquisition plan by Pertamina.  "The acquisition plan is a corporate action of both sides. I support the step because it would lead Pertamina to become a global player in the world oil business," Achmad Ferial, another member of the House Commission VII, said on Thursday.          He said that through the acquisition process, Pertamina could increase its performance and supports its transformation into a reputable company in the world. However, the acquisition should guarantee that Pertamina would be able to increase its oil and gas production in the future.          Legislator Dito Ganindito, also of Commission VII, said Pertamina's plan to acquire Medco needed support.  He said that if it acquired Medco, Pertamina would obtain not only supply for increasing its production capacity but also dividends from the acquisition.          "So, the chance for Pertamina to become a world class oil and gas company would soon become a reality," Dito, who hailed from the Golkar Party faction, said.          Pertamina is now surrounded by foreign oil firms which dominate the oil business in Indonesia. Exxon Mobil, Shell and British Petroleum are foreign firms which control most of the country's oil fields. Malaysia's Petronas which could be said to have learned its experience from Indonesia is now more progressive than Pertamina.          Therefore, it is now time for Pertamina to become a main player in the oil business. If this expectation is fulfilled, Pertamina would become a strong firm to compete in the world market.          There are many strategies that could be applied by Pertamina to fulfill the expectation, among others through the acquisition of Medco, he said.          Vice President for Corporate Communications of Pertamina, Mochammad Harun said Pertamina's hope for becoming a world class firm needed support. The immediate target it has to realize is to achieve its target of 1 million barrel production per day, at least in 2015.          Pertamina could achieve the target if it maximizes its oil and gas  upstream production capacity. The upstream sector would serve as Pertamina's growth center, he said.          "We have the target to produce one million barrels of oil per day in 2015," he said.      (T.A014/A/HAJM/21:59/a/R013)11-11-2010 22:15