Government to sell Ardjuna Sakti FSO

The government plans to sell the aging Ardjuna Sakti floating storage and offloading (FSO) vessel, which has long been unutilized.

Minister of Energy and Mineral Resources Ignasius Jonan sought on Monday approval from the House of Representatives Commission VII on energy and mining to sell the FSO vessel via tender. The sale of state asset with acquisition value worth more than Rp 100 billion requires House approval.

The ministry said in a statement that the Ardjuna Sakti FSO was built in 1976 by Tacoma Concrete Tech, and was acquired for Rp 491.7 billion by BP Indonesia Berau as production facility in the Java Sea. After 29 years in operation as LPG storage facility, BP handed over the FSO vessel in 2008 to the government and turned into state asset.

The FSO vessel was anchored at the PT KBS Cilegon port at a cost of Rp 7.8 billion per year, and has since never been utilized. Jonan said that the vessel is now in damaged condition and filled with corrosion, prompting the government to sell the vessel as no other parties are utilizing it. ?The Ardjuna Sakti FSO is no longer worthy to function as LPG storage,? he said, adding that the vessel in 2011 was worth Rp 32.9 billion.

The ministry said the House supported the government?s plan to sell the Ardjuna Sakti FSO.

Editing by Reiner Simanjuntak