Pertagas holds majority stake in Duri-Dumai gas pipeline project

Petromindo

Gas distribution firm PT Pertamina Gas (Pertagas), a subsidiary of state-owned oil and gas firm PT Pertamina, said it will have a majority 60 percent interest in the planned Duri-Dumai gas pipeline project in Riau Province, with the balance to be held by partner IDX-listed gas distribution firm PT PGN Tbk.

Pertagas President Director Toto Nugroho acknowledged on Wednesday that the distribution of share ownership in the gas pipeline project was one of the toughest issues during negotiation with the state-controlled PGN. ?We will hold majority stake of 60 percent, and PGN 40 percent,? he told reporters.

He said that the government has assigned Pertagas and PGN to develop the project through joint operating scheme (or KSO), which will be the first test for the government?s plan to create a holding company for state-controlled oil and gas assets, under which the state-controlled PGN will be merged into Pertamina.

Toto said as the shareholding structure of the KSO has been concluded, the KSO will then select the EPC contractor for the project. He said that construction of the Duri-Dumai gas pipeline project is targeted to be completed in 18 months.

Once completed, the gas pipeline will receive gas from Bentu block operated by IDX-listed PT Energi Mega Persada Tbk at a volume of 57 bbtud, and from Corridor block operated by ConocoPhillips at a volume of 40 bbtud. (*)