EXCLUSIVE: Pertamina needs US$800 million to buy all Repsol-YPF assets
Wednesday, February 7 2001 - 04:30 AM WIB
State oil and gas company Pertamina said it needed US$800 million to buy all the Indonesian assets of Spanish-Argentinean oil and gas giant Repsol-YPF (Yacimentos Petroliferos Fiscales).
Secretary of Pertamina's board of commissioners Roes Aryawidjaja told Petromindo.Com on Tuesday the amount was stated by Pertamina in the price proposal to be approved by the government.
Under the existing regulation, Pertamina needs the government's approval for its plan to acquire Repsol-YPF's assets.
Roes said Pertamina laid out three alternatives for its plan to buy Repsol-YPF's Indonesian assets.
The first alternative is buying all the assets, for which Pertamina stated that it needed $800 million.
The second alternative is buying a quarter of the assets, for which Pertamina stated that it needed between $150 million and $200 million.
The third alternative is buying a half of the assets. Roes however did not specify the amount needed by Pertamina to finance the third alternative.
It remains unclear which assets are included in the second and third packages.
Repsol-YPF wants to sell all its Indonesian assets following its corporate strategy 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).
Pertamina's officials earlier said 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. (Epin)