Pertamina finally decides to sell two giant oil tankers

State owned oil and gas company PT Pertamina has finally decided to sell two giant crude oil tankers ordered in 2002 from South Korea’s Hyundai Heavy Industries due to the company’s financing problem, Kompas daily reported Thursday.

Harri Poernomo, the director of the downstream operation of Pertamina, confirmed on Wednesday the planned sale of the giant tankers which would have a capacity of 260,000 dead weight tons (DWTs), respectively.

Harri claimed that at least 30 companies had expressed their interest to buy the two tankers, which are now still being built by Hyundai.

He said that the decision to sell the two tankers which would, each, cost the company about US$65 million to build was made during a recent meeting between the company’s board of executives and commissioners.

The two tankers are part of six tankers ordered by Pertamina in 2002 as part of the company’s program to strengthen its fleet. The other four tankers are being built by local shipbuilding companies.

The project to expand Pertamina’s fleets was initiated by Pertamina’s former president Baihaki Hakim who, during earlier years in the company’s top position, decided to buy 12 tankers as part of the project. The current management, however, reduced the tanker procurement program to only six.

The new management also cancelled the company’s plan to issue bonds to finance the tanker procurement. (*)