Pertamina to speed up the establishment of holding company
Monday, May 31 2004 - 02:53 AM WIB
State owned oil and gas company Pertamina will establish a holding company for upstream operations this year instead of 2005 as earlier scheduled, Neraca daily reported on Monday.
Pertamina president director Ariffi Nawawi said in Jakarta over the weekend that after the establishment of the holding company, Pertamina would also form new companies that would be operated directly in the oil and gas exploration and production activities.
He said that all the companies which would be operated under the holding company would be prepared for privatization either through the sale of their shares through strategic investors or through initial public offering (IPO).
He said that the establishment of the holding company would be part of Pertamina’s restructuring program, which would also include the streamlining of the company’s downstream operations.
As part of the program, Pertamina would also form a holding company for downstream operation in 2005, which would be responsible for the company’s activities in shipping, aviation, refinery and liquefied petroleum gas (LPG).
Ariffi said that the establishment of subsidiaries in the upstream sector would be carried earlier than the establishment of the parent company. (*)