Pertamina expects assets to increase<\/p>\n
Moch. N. Kurniawan, The Jakarta Post, Jakarta<\/p>\n
State oil and gas company Pertamina will see its assets increase
\nin value from the current Rp 100 trillion (about US$9.8 billion)
\nonce asset valuation this year is completed, according to company
\nfinance director Ainun Naim.<\/p>\n
Ainun said last week that the increased asset value would be a
\nconsequence of the planned transfer of some oil refineries and
\nother assets now in the hands of the government.<\/p>\n
He also said that oil reserves would be included as company
\nassets.<\/p>\n
\"Our assets will increase. They won't decline although we will
\nhave to separate the company's assets from the government's
\nassets,\" he told The Jakarta Post.<\/p>\n
Pertamina is currently in the process of selecting an
\nindependent appraiser to assess the company's assets and separate
\nthose belonging to the government.<\/p>\n
The asset evaluation is part of the company's plans to
\ntransform itself into a limited liability company by early 2003,
\nas stipulated in the new Oil and Gas Law that came into effect in
\nNovember last year.<\/p>\n
Under the new law, Pertamina is to be purely a oil and gas
\nfirm that no longer has the regulatory function that it had in
\nthe past. As a consequence, Pertamina will receive certain assets
\nfrom the government.<\/p>\n
Ainun declined to give an estimate of Pertamina's new asset
\nsize, but one official said the company's assets could double in
\nsize.<\/p>\n
Meanwhile, Pertamina spokesman Ridwan Nyak Baik said the
\nincreased asset value would provide the company with certain
\nbenefits, such as more bankability and greater confidence to
\nforge alliances.<\/p>\n
\"This is like giving us more ammunition to go to war,\" he
\nsaid.<\/p>\n
Pertamina, in its new form, will become a holding company for
\nmany subsidiaries not only in oil and gas upstream and downstream
\nactivities but also in the geothermal power and the petrochemical
\nsectors.<\/p>\n
Separately, oil analyst Ramses Hutapea said Pertamina would
\nface some difficulties when the government transferred certain
\nassets to the company due to possible conflict with existing
\ncontracts between the government and oil and gas contractors.<\/p>\n
He said the government's plan to hand over many oil platforms
\nand liquefied natural gas (LNG) plants in the country to
\nPertamina would lead the company to charge other oil companies
\nusing the facilities.<\/p>\n
The charge will be necessary for Pertamina because it will
\noperate as a profit-oriented company, Ramses said.<\/p>\n
But the charge could spark protests from many oil companies as
\nit would violate their contracts, under which they are not liable
\nto such a charge, he added.<\/p>\n
Ramses also warned that it was pointless to have huge assets
\nif Pertamina's oil and gas operation was not efficient.<\/p>\n
He feared that Pertamina could end up like Argentine oil
\ncompany YPF, which was taken over by Spain's oil giant Repsol
\nfollowing its failed transformation.<\/p>\n
\"Look at the result now. YPF can't do anything to help
\nArgentina recover from its economic crisis,\" Ramses said.<\/p>\n
He urged the government to amend the new Oil and Gas Law and
\nlearn from the Malaysian state oil and gas firm Petronas, which
\nhas become a world leading oil and gas firm even though it is 100
\npercent owned by the government.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-expects-assets-to-increase-1447893297",
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