Pertamina delays the issuance of the US$500 million bonds

State owned oil and gas company Pertamina has delayed the issuance of its US$500 million bonds until the first quarter of next year due to unfavorable condition in the world?s financial market.

Pertamina?s financial director Alfred Rohimone said in Jakarta on Thursday that it would be almost impossible for the company to issue the US$500 million bonds this year because, in addition to unfavorable condition in the world?s financial market, the company?s financial audit had not yet been completed.

?We hope the problems could be resolved this year so that the bonds could be issued in the third quarter of next year,? he said, adding that the initial response from foreign investors towards the company?s bonds was quite encouraging.

Pertamina?s plan to issue the US$500 million bonds was first unveiled early last year but the plan was cancelled. The company later said that it would reduce the value of the bonds to US$250 million. The proceeds from the offering of the bonds will be used to finance both upstream and downstream projects.

Meanwhile Pertamina?s marketing director Ari Sumarno said that the state owned oil and gas company was facing difficulties to obtain crude oil supply from international market. ?But in January, we will be able to get crude oil supply from Kuwait,? he said. (dino)