Pertamina's units merged

Pertamina's units merged

JAKARTA (JP): The state-owned oil company Pertamina has merged its two marketing affiliates in Japan -- Far East Oil Trading Company and Japan Indonesia Oil Company -- into a new company called Pacific Petroleum Trading Company, said a minister.

Speaking to reporters after a meeting with President Soeharto yesterday, Minister of Mines and Energy I.B. Sudjana said the new company, of which some 50 percent is owned by Pertamina, will continue to deal with the marketing of Indonesian oil in Japan.

"By this merger, we can save some Rp 29.14 billion (US$12.24 million) per year," he said.

Asked whether there was any other reason for the merging of the two companies, Sudjana said: "No. It's only an economic reason. We want to minimize costs."

He pointed out that the government is currently striving to minimize costs to increase its revenues.

Sudjana said that Indonesia's oil exports to Japan have increased, particularly because Japan's nuclear power station is currently out of order.

He said Indonesia exports some 800,000 barrels of crude oil per day, of which 500,000 barrels are shipped to Japan. (13)