EXCLUSIVE: Govt okays Pertamina's plan to acquire Repsol-YPF's assets

The government has given the go-ahead for state oil and gas company Pertamina to execute its plan of acquiring all the assets of Spanish-Argentinean oil and gas giant Repsol-YPF in the country, according to a senior official at the ministry of energy and mineral resources.

Expert staff to the minister Kardaya Warnika had the company's board of commissioners, which are composed of several ministers, had approved Pertamina's plan to acquire all Repsol-YPF's shares in seven oil and gas blocks in the country.

But, the state company was asked to form joint ventures with other companies to acquire the shares as to ease the financial burdens caused by the acquisition.

"To raise financing for the acquisition, Pertamina was asked to form joint ventures with other companies," Kardaya told Petromindo.Com on Tuesday.

Secretary to Pertamina's board of commissioners Roes Ariawidjaya told Petromindo that the board's decision was in line with Pertamina's proposal to the board that it would acquire Repsol-YPF's assets in join ventures with other companies.

Earlier, Roes said Pertamina needed US$800 million to acquire the shares.

Repsol-YPF wants to sell all its Indonesian assets following its decision to focus operations in North Africa and South America.

Repsol-YPF has interests in seven production sharing contracts (PSCs) in Indonesia, that is South East Sumatra (65 percent), North West Java (36.7 percent), West Madura (25 percent), Polleng (59 percent), Blora (16.7 percent), South Sokang (45 percent), Jambi Merang (25 percent).

Repsol-YPF had selected Pertamina as the preferred bidder for the assets.

Other bidders for the assets are local firm Medco Energy Corporation, Thai Petroleum Authority, Mitsui and Korea National Oil Corporation. (Godang)