Pertamina plans new subsidiary

State-owned oil and gas firm PT Pertamina plans to set up a new subsidiary that would be engaged in the marking of downstream oil and gas products in the international market, Bisnis Indonesia reported on Tuesday.

The paper quoted Pertamina President Director Dwi Soetjipto as saying that the new subsidiary would be set up once the company completed the required study. In the meantime, the company will first set up an international marketing unit.

Among of the products to be marketed by the planned new subsidiary are MFO and HSD, particularly in the Southeast Asia. The company is currently developing a fuel terminal on Sambu Island, in Riau Island province, to provide such products to ships passing through the Malacca Straits.

Dwi said that the planned new subsidiary will be similar to the now defunct PT Pertamina Energy Trading Limited (Petral). But unlike Petral, the new subsidiary will not be engaged in the supply of crude and fuel products. The supply of crude and fuel products will be handled by Pertamina?s Integrated Supply Chain. (*)