Indonesia’s state-owned oil and gas company PT Pertamina plans to restructure its entire organization after its transformation into an oil and gas holding company, Jakarta Post reports.
Pertamina’s equity is expected to increase by 13.5% to USD 26 billion, with a debt-to-equity ratio of 1.1 times, when it becomes a holding company.
Nicke Widyawati, Pertamina’s human resources director, said Pertamina would also establish other sub-holding firms in the upstream, refinery and petrochemical as well as retail sectors.
“Pertamina is currently formulating a long-term business road map until 2050, which is expected to finish by March. After that, we will be able to see Pertamina’s business structure more clearly, including the establishment of other sub-holding firms,” Nicke said.
Pertamina has estimated that it will need around USD120 billion to support its business plans within the next decade, of which one-third will be used to finance various refinery projects.
The government plans to transfer its 57% share in state-owned gas firm Perusahaan Gas Negara (PGN) to Pertamina in March. The consolidation is expected to boost the value, debt leverage and efficiency of the two energy companies.
Under the restructuring plan, PGN will be combined with Pertamina’s gas subsidiary, PT Pertamina Gas (Pertagas), to enable PGN to become a sub-holding company in charge of Pertamina’s midstream to downstream gas business.
The State-Owned Enterprises (SOE) Ministry’s Undersecretary for Mining, Strategic Industries and Media Affairs, Fajar Harry Sampurno, said that his office has formed an implementation team to integrate PGN’s and Pertagas’ operations.
Under the plan, PGN’s upstream subsidiary, PT Saka Energi Indonesia, will operate under the supervision of the upstream sub-holding company, along with other Pertamina upstream subsidiaries, such as PT Pertamina Hulu Energi and PT Pertamina EP.