Pertamina allocates $10 million to invest overseas
Tuesday, July 10 2001 - 03:09 AM WIB
Pertamina president Baihaki Hakim said that for the initial stage, Pertamina would look for investment opportunities in Vietnam, Myanmar, Iraq and Libya.
"For the time being, the funding of exploration activities is not really big because the first stage of exploration in Iraq, for instance, only needs $2 million in investment. So, if all the projects go, then we need a total fund of $10 million," he said Monday after attending a ceremony installing Pertamina's new directors by Minister of Energy and Mineral Resources Purnomo Yusgiantoro.
Baihaki said that the $10 million fund would not burden Pertamina's finance.
He noted that the fund would be used to finance field studies and feasibility studies as well as seismic and geological surveys.
In addition to exploration activities, Baihaki said Pertamina would also expand its downstream businesses, especially trading, into Dubai in the Middle East.
Pertamina would soon open its trading arm in Dubai to facilitate Pertamina's expansion into the Middle Eastern region.
Purnomo said that he fully supported Pertamina's move to expand its businesses into overseas markets, including Dubai.
"If Petronas (of Malaysia) has its office in Jakarta, Pertamina will have its office in Dubai," he said.
To support Pertamina's expansion drive, Baihaki said, Pertamina would form a new organizational structure, that would be independent from Pertamina's management.
Pertamina would appoint Gatot Karyoso Wiroyudo, former Pertamina upstream director to lead that new oganization. This state oil firm would also place Ariffi Nawawi, former Pertamina downstream director, to lead another new organization under Pertamina that would establish cooperation projects such as refinery or petrochemical plants. (*)