Pertamina has no commitment to lease tankers from Frontline

State oil and gas company Pertamina's president Ariffi Nawawi has denied speculations that the state firm would lease the supertankers it is selling to Bermuda-based shiping giant Frontline Ltd, Suara Karya reported on Saturday.

Pertamina is selling its two Very Large Crude Carriers (VLCC) now being built by Hyundai Heavy Industries in South Korea to Frontline for US$180 million. The deal has sparked controversies as some Pertamina watchers suspect that top officials of the firm are seeking to obtain illegal profits from the sale.

Some people also suspect that Pertamina has made a backroom deal with Frontline that obligates the state firm to lease the tankers from Frontline once the sale and purchase process is completed. Such a suspicion surfaced after Frontline announced on its website that it would sell the tankers to Ship Finance International Limited, which will lease the tankers to Frontline. Frontline will then lease the tankers to third parties.

However, Ariffi denied such a speculation, adding he was "not aware" about Frontline's plan for the supertankers.

"Pertamina is not interested in leasing the vessels. Once the sale of the tankers to Frontline is completed, Pertamina will have nothing to do with Frontline," Ariffi said. (*)