Pertamina?s assets will be insured for US$42 million

State owned oil and gas company Pertamina will insure its entire assets at general insurance company PT Tugu Pratama Indonesia for US$42 million, Republika daily reported on Wednesday.

Tugu Prama?s president Yasril Rasyid said on Tuesday that Pertamina?s assets would be insured against fires, earthquake and damages resulting from explosion. But he said that the $42 million insurance contract was not yet final and would be further negotiated given the high risk of Pertamina?s assets.

Pertamina is the loyal client of PT Tugu Prama, which was previously controlled by former president Soeharto?s close friend Mohamad Bob Hasan.

Yasril said that Tugu Pertama recently paid an insurance claim to Pertamina for the loss resulting from fires at its oil well in Cirebon. But he did not say ho much the claim paid the state oil and gas company. (*)