Elnusa returns Cilegon refinery project to Pertamina

Oil, gas service firm PT Elnusa said on Wednesday that it had dropped plans to participate in the development of a refinery plant in Cilegon and had returned the project to its holding company, state oil and gas firm PT Pertamina.

 

Pertamina owns 51 percent of Elnusa.

 

“The building of the plant is the core business and value of Pertamina. So, we return it to Pertamina as the holding company,” President Director of Elnusa Eteng Abdul Salam Eteng told journalist in Jakarta .

 

Earlier, Elnusa planned to build a plant with a capacity of 300,000 barrel per day in a cooperation with National Iran Oil Company.

 

Elnusa now focuses on its core business, namely oil and gas services and competence, he said. "We would sell it to the public in the Initial Public Offering (IPO) scheduled for late this year," he said.

 

Elnusa had appointed Mandiri Securitas as underwriter for the IPO wherein the company is expected to release 20 percent of its shares to the public.

 

“The company expects to earn US$100 million from the IPO and the funds would be used for financing the development of our service and competence business,” he said. (godang)