Pertamina ready to operate as limited company by April

State owned oil and gas company Pertamina will operate as a limited company before April next year in accordance with the new oil and gas law. The regulation on the change in Pertamina?s status has been drafted but it still needs approval from Ministry of Finance.

"We are still waiting for the approval from Minister of Finance," Secretary General of the Ministry of Energy and Mineral Resources Djoko Darmono told reporters on Friday.

At present, Pertamina operates under a special law, which gives the state owned oil and gas company the power to represent the government in developing the country?s oil and gas activities. The company also holds the exclusive rights to develop and operate both upstream and downstream oil and gas activities.

Under the new oil and gas law Pertamina should operate just like other ordinary company and should also relinquish all the exclusive rights it has enjoyed for decades.

Pertamina?s president Baihaki Hakim said in Jakarta recently that Pertamina was still preparing a massive restructuring to anticipate the change in the company?s status into a limited firm. The restructuring will include the establishment of a holding company which will administer all Pertamina?s business units, and all the preparation related to the transfer of the workers to the new Pertamina. (*)