JAKARTA (TheInsiderStories) - Energy holding company, PT Pertamina has establised a new sub-holding for shipping, PT Pertamina International Shipping by integrating assets and shipping business lines. Currently, the new sub-holding having six ports, five fuel terminals, and 750 vessels, of which 540 vessels are self-owned and the rest are chartered.
Minister of state own enterprises (SOEs), Erick Thohir, stated in an official statement released on Wednesday (05/05), the new unit of Pertamina will not only run the shipping business, but is targeted to become an integrated marine company by running the logistics business and storage ports.
He also confirmed that Pertamina shipping will take the floor on the stock market in this year. While, CEO of Pertamina, Nicke Widyawati, revealed that the subsidiary will become the first sub-holding of Pertamina to take the floor on the stock exchange.
According to her, there are a potential an increase demand for liquid products until 2030 and will reach its peak in 2040 around 6 to 13 million barrels. Of this amount, around 22 percent are still served by third parties and the remaining her office. Apart from the potential for the crude market, there is also the potential from gas products.
On April 15, Pertamina Shipping has launched Very Large Crude Carrier (VLCC) ship to support the distribution of national energy supply and to become an integrated logistic and marine solution company. Widyawati explained that the investment made by presenting two ships, Pertamina Pride and Pertamina Prime.
“These two vessels will serve foreign markets and transport crude oil from Saudi Aramco to Indonesia. With our own ships, we have more flexibility because Pertamina has foreign reserves and production of 110,000 barrels per day,” said the CEO.
Pertamina has announced to spends around US$10.7 billion in 2021, double than last year of $4.7 billion. Around 46 percent of the total funds will be allocated for upstream oil and gas activities. Then, 36 percent for refineries & petrochemicals projects and 18 percent for other business activities, including new and renewable energy.
The company also targeting the oil and gas reserves to reach 696 million barrels of equivalent (MMBOE) or almost four times than last year. In the downstream sector, Pertamina is targeting the fuel sales volume to increase by 12 percent from last year. While, gas distribution is targeted to reach 392,000 british thermal unit per day and gas transmission of 502 billion standard cubit feet through the construction of a gas pipeline network.
In this year, the oil and gas producers targeting the electricity production of 4,500 gigawatt through the development of Geothermal Power Plants, Solar Power Plants, and Biogas Power Plants. The company also continues its role in the electric vehicle battery ecosystem and dimethyl ether development.
Pertamina has started the construction of refinery development master plan (RDMP) Balongan to increase the production capacity from 125 million barrel steam per day (MBSD) to 150 MBSD. Its also be able to produce naptha processing from 5.29 MBSD to 11.6 MBSD. The refinery will be able to process Heavy Mix Crude or Lighter Crude Oil. Its hoped that this project can be completed in March 2022.
The energy firm also has signed a memorandum of understanding with PT Nindya Karya, and a consortium of South Korea companies represented by the DH Chairman Global Holdings Co. Ltd., for Dumai project. This project have a valued of $.5 billion and could increase the production capacity of domestic oil and fuel oil and reducing dependence on oil imports.
The mega-project is one of the National Strategic Projects as referred to listed in Presidential Regulation Number 56 of 2018. Last month, the government-owned energy firm has raised $1.9 billion from the issuance of yankee bonds. To finances the planned, Pertamina has appointed six banks to seek loans in the form of a bridging loans around $3 billion.
The banks are BNP Paribas, Citi, Credit Agricole, MUFG Bank, Societe Generale, and Sumitomo Mitsui Banking Corp. Widyawati has stated that the energy producer needs funding around $133 billion until 2026 to boost the production capacity. Of this amount, will be closed through external funding, initial public offering, and project financing about $49 billion.
Written by Editorial Staff, Email: theinsiderstories@gmail.com
