Pertamina negotiating with 7 firms to form JV to buy Repsol-YPF assets
Thursday, May 17 2001 - 04:30 AM WIB
State oil and gas company Pertamina said on Thursday it was negotiating with seven oil and gas companies for the establishment of joint ventures to acquire all the Indonesian assets of Spanish-Argentinean oil and gas giant Repsol-YPF.
"They are all big companies," Pertamina's president Baihaki Hakim told reporters on Thursday.
The government has approved Pertamina's plan to acquire all Repsol-YPF assets in the country, but asked the state company to form joint ventures for the acquisition to ease its financial burden caused by the acquisition.
Repsol-YPF has shares in seven oil and gas blocks, including fourth production blocks North West Java (36.7 percent), South East Sumatra (65 percent), West Madura (25 percent), Poleng (59 percent), and three exploration blocks Blora (16.7 percent), Jambi Merang (25 percent), South Sokang (45 percent).
Baihaki said Repsol-YPF valued all its shares in the blocks at US$800 million.
"But, we are negotiating with the company to lower the price," he said. (Godang/Alex)