PP Energi acquires oil refinery
Tuesday, August 8 2017 - 12:52 AM WIB
Energy company PT PP Energi, a subsidiary of IDX-listed engineering and construction firm, has acquired an oil refinery in Bantaeng, South Sulawesi, worth Rp 7 trillion.
PP Energi Commissioner Abdul Haris Tatang said on Monday that the acquisition was completed in June.
He said that the refinery, which has installed capacity of 30,000 bpd, will process crude oil into various fuel oil products and asphalt, which will be sold to a number of companies including state-owned oil and gas firm PT Pertamina.
?We already have obtained contracts from a number of companies including Pertamina,? Abdul said on the sidelines of a public expose of PT PP, which plans to issue perpetual bonds worth Rp 700 billion.
He said that his company is teaming up with PT Inti Perkasa in the acquisition of the oil refinery, with PP Energi holding a 49 percent stake, and Inti Perkasa 51 percent.
He added, however, that in the future, PP Energi will increase its stake in the refinery up to 74 percent.
Editing by Reiner Simanjuntak