PGN seeks Rp 11.5 trillion funds to acquire gas blocks

State-owned gas distributor, PT Perusahaan Gas Negara (PGN) said on Thursday it may raise up to Rp 11.5 trillion (1US$ = Rp 9,157) to finance the company?s plan to acquire oil and gas blocks.

"We're in a due diligence process to acquire stakes in three oil and gas blocks, but I can't disclose the details," PGN's finance director Reza Pahlevi said.

The funds could come from bonds or loans, he said.

Pahlevi also said that PT Transportasi Gas Indonesia (TGI), a unit of PGN, wants to borrow $250 million to fund capital expenditure.

TGI is an international joint venture owned 59.87 by PGN, 40 percent by Transasia Pipeline Company Pvt. Ltd and 0.13 percent by PGN?s employee fund Yayasan Kesejahteraan Pegawai PGN.

It operates 1,006 km of onshore and offshore gas pipelines from Grissik to Duri and Grissik to Singapore via Batam.

Meanwhile, president director of PGN Hendi Prio Santoso said that his company was interested to buy BP Indonesia?s stake in the Tangguh LNG project in Papua of the latter company decides to divest its ownership in the project.

?If there?s an opportunity, PGN wants to participate in terms of ownership in the Tangguh LNG project. PGN also wants to have gas supply from Tangguh,? he told reporters following the company?s shareholders meeting on Thursday. (godang)