Pertamina gets US$200 million loan to finance "Blue Sky" program

State owned oil and gas company Pertamina has received US$200 million in loan from a syndicate of international banks to finance its Langit Biru or Blue Sky program, a project initiated by the oil and gas company to promote the production of unleaded fuel, Bisnis Indonesia reported on Saturday.

"The loan was reported during the meeting of Pertamina?s commissioners on Wednesday," Minister of Energy and Mineral Resources Purnomo Yusgiantoro said on Friday.

Purnomo who is also the chief commissioner of the state owned oil and gas company said that the funds would be used to increase the production of unleaded fuel in the Balongan refinery plant. "The funds are not enough if they are also used to boost the production of the unleaded fuel in the Cilacap refinery plant," he added.

He said that the government actually planned to start the "Blue Sky" program in 2003 but it could not be carried out on schedule due to a difficulty in obtaining the loan. "We therefore hope the project could be begun in 2005," he added.

The funds, according to the minister, would be used for the procurement of High Octane Mogas Component (HOMC). (*)