Pertamina can?t complete acquisition of overseas assets this year

Petromindo|Khalsa

State-owned oil and gas firm PT Pertamina said it will not be able to conclude the planned acquisition of oil and gas assets in Russia and Iran this year as discussions with the would-be foreign partners are still underway, Bisnis Indonesia reported on Friday.

The paper quoted Pertamina Upstream Director Syamsu Alam as saying that the planned acquisition of oil and gas blocks in Russia is still at the stage of discussing the commercial terms, while the planned acquisition in Iran is still at the stage of discussing the type of cooperation contract as the country has just reopened investment opportunities for foreign investors following the lifting of the US-led international trade ban a few years ago.

?It (the planned acquisitions) will not be concluded this year,? he said, dismissing suggestion that it was related to difficulties faced by the company in raising funds as its finances have already been stretched with various massive projects at home including planned refinery projects and development of domestic oil and gas blocks.

As part of a 2016 deal between Pertamina and Russia?s Rosneft to jointly develop the Tuban oil refinery project in East Java, Pertamina was given opportunity to invest in two of Russia?s oil and gas assets, namely Northern Tip of Chayvo Field (Sakhalin Island) and Ruskoye Field. Rosneft offered Pertamina of 20-37.5 percent interest in the Northern Tip of Chayvo Field project.

Pertamina in February of this year also submitted proposals to National Iranian Oil Company (NIOC) to develop two oil and gas blocks in Iran, Ab-Teymour and Mansouri, which each is estimated to have a reserve of more than 1.5 billion barrels. The proposals are a follow-up step to the memorandum of understanding (MoU) signed by the two companies in August of 2016. Based on the MoU, Pertamina was given a chance to file proposals for development of Ab-Teymour and Mansouri by the end of February this year. (*)