Pertamina considers canceling Myanmar expansion plan
Thursday, November 24 2016 - 01:15 AM WIB
State-owned oil and gas firm PT Pertamina is considering to cancel its plan to expand its fuel retail business into Myanmar due to lingering conflict between ethnic groups and government troops.
?There a lot (of conflicts) happening in Myanmar right now. This is one of the considerations whether we?ll proceed (with the expansion plan) or not,? said Vice President Director of Pertamina, Ahmad Bambang to Petromindo.com on Wednesday.
Pertamina said in September it planned to acquire a 49 percent stake in Myanmar Petroleum Products Enterprise, a state-run firm, as it aims to set a foothold in the country?s fast-growing fuel retail market. The Myanmar state firm operates 1,350 gasoline stations and 24 fuel oil depots. Pertamina is competing with Indian Oil Company in the planned acquisition.
According to estimates, Myanmar?s fuel consumption will expand at an average of 6 percent per year during 2016-2020, outpacing Cambodia, Vietnam and Thailand.
Ahmad said previously that the planned acquisition of the Myanmar company forms part of Pertamina?s efforts to expand its fuel retailing business to other Asian countries including Vietnam and Thailand. Pertamina said previously that it was also looking into Cambodia and Timor Leste.
Editing by Reiner Simanjuntak