Pertamina plans $1.1b IPO for upstream unit

State oil and gas company PT Pertamina (Persero) plans to raise US$1.1 billion of fresh funds through the listing of its upstream wholly-owned subsidiaty PT Pertamina Hulu Energi (PHE).

Investment Planning and Risk Management Director Frederick Siahaan said on a sideline of parliamentary hearing in Jakarta on Monday that PHE will float around 20 percent of its shares by year-end of early next year.

"This will be of the biggest IPO in Indonesia," he said, adding that proceed from the IPO will be used to acquire oil, gas blocks in Indonesia and overseas.

According to Siahaan, the IPO would be conducted to support the Company?s ambitious plan to produce 1million BOEPD in 2015.

PHE is currently having interest in several offshore oil, gas blocks in Indonesia and overseas including 46 percent operating interest at Offshore Northwest Java (ONWJ) oil, gas block offshore West Java.

He also added that the Company is also planning to float shares of its subsidiaries PT Pertamina Geothermal Energi (PGE) and PT Pertamina Gas (Pertagas) after PHE. (godang)