Pertamina advised not to cancel tankers procurement plan

A senior legislator Thursday urged state oil and gas firm Pertamina to review its plan to cancel procurement of new oil carriers, saying that having own tankers is less costly compared with chartering them.

?It will be better for Pertamina to buy new tankers rather than chartering them,? said Amir Moeis, chairman of Commission IX of the House of Representatives in charge of state finances and monetary affairs.

Amir was speaking in a question and answer session of a hearing between the House commission and Pertamina leaders.

In response, Pertamina president director Ariffi Nawawi said buying new carriers as planned could trouble the company?s finances for 20 years.

Pertamina had planned to procure 35 new tankers in order to increase its tanker fleet and also had considered to issue bonds worth US$90 million and Rp225 billion (US$=Rp8,500) to finance the procurement of the oil carriers.

However, Pertamina?s finance director Alfred Rohimone said recently that they would likely cancel bond issuance and their plan to buy new tankers. The company wanted to focus on its upstream operations, he said.

Alfred said his company were going to cancel its plan to procure seven new tankers, but would go on with another six, includes two very large crude carriers (VLCC), because procurement contract had been signed.

Pertamina had signed contract to build two VLCCs with South Korean shipmaker Hyundai Heavy Industries.

Pertamina had planned to reduce its dependence on chartered carriers, which at present account for some 80 percent of its tanker fleet. (godang)