Perta Oil continues operations as normal<\/p>\n
HONG KONG (Dow Jones): Perta Oil Marketing Ltd., an affiliate
\nof Indonesian state-owned oil company, Pertamina, is operating as
\nusual, despite government statements that Pertamina's affiliates
\nare under review, a source close to Perta Oil Marketing Ltd.
\nsaid.<\/p>\n
\"Business is going on as normal,\" he said, adding that Perta
\nOil still expects to handle June oil product allocations for
\nstate-owned oil concern Pertamina.<\/p>\n
Perta Oil hasn't been notified officially of any plans to
\ncease or change its relationship with Pertamina, Asia's largest
\nexporter of crude oil, the source said.<\/p>\n
Another source close to Perta Oil said, however, it wasn't
\nclear why Pertamina has delayed the release of June oil product
\nallocations, originally expected by May 20. Apart from a 3.2
\nmillion barrel low sulfur waxy residual fuel allocation issued
\nWednesday, Pertamina's June allocations have been delayed by more
\nthan one week.<\/p>\n
The first source also described reports that Pertamina will
\noperate its trading directly as a \"rumor that is wrongly
\ndeveloped.\"<\/p>\n
On Monday, the Minister of Mines and Energy Kuntoro
\nMangkusubroto said Pertamina will review longstanding marketing
\narrangements with two of its affiliates that have ties to family
\nmembers of former president Soeharto. The minister added that
\naffiliates overcharge Pertamina for their services.<\/p>\n
The companies, Singapore-based Perta Oil Marketing and Hong
\nKong-based Permindo Oil Trading Co., receive monthly allocations
\nof crude oil, petroleum products and liquefied petroleum gas to
\nbuy or sell in the spot market.<\/p>\n
Pertamina should buy back Soeharto family stakes in oil
\ntrading affiliates instead of terminating contracts with the
\naffiliates, the first source said.<\/p>\n
\"If anything happens (from the review), it would only be on a
\nshareholder level,\" the source close to Perta Oil said. \"The
\neasiest way (to resolve questions of nepotism) would be for
\nPertamina to buy back shares from minority shareholders.\"<\/p>\n
The source defended Perta Oil's performance as a trading
\naffiliate, adding that \"Perta Oil is managed by Pertamina (and)
\nkey employees are from Pertamina or Perta directly.\"<\/p>\n
The Humpuss group, controlled by Soeharto's youngest son,
\nHutomo \"Tommy\" Mandala Putra, owns 25 percent of Perta Oil. A
\nunit of the Nusamba group, which also has close ties to Soeharto,
\nholds 25 percent, with Pertamina holding the remaining share, the
\nsource said.<\/p>\n
PT Permindo, which is 65 percent owned by Soeharto's son
\nBambang Trihatmodjo and business associates, including
\nSoeharto's cousin Sudwikatmono, and Nirwan Bakrie, is the other
\ntrading affiliate whose contracts are under review by Kuntoro.<\/p>\n
Pertamina owns 35 percent of the affiliate.<\/p>\n
Pertamina and PT Permindo couldn't be reached for comment.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/perta-oil-continues-operations-as-normal-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }