TEMPO.CO, Jakarta - The State-Owned Enterprises Ministry is finalizing a plan to establish a holding company in the oil and gas sector. Later, state gas company PGN will act as a sub-holding entity that focuses on managing and operating all gas business.

"PGN will become Pertamina's subsidiary and handle all downstream gas businesses. Everything from midstream to downstream will be managed by PGN," the SOE Ministry's deputy of the mining business, strategic industries and media Fajar Harry Sampurno said yesterday.

Harry said that as a sub-holding PGN will become a subsidiary of Pertamina. Under Pertamina, PGN maintains its focus in the gas sector, with possibilities of expanding into the sales and management of LNG.

PGN will also be in charge or managing Arun LNG plant, FSRU West Java, and a number of gas businesses which, to date, are managed directly by Pertamina and its subsidiaries.

That way, said Harry, all matters related to natural gas affairs will be managed directly by PGN. Meanwhile, Pertamina will remain focused on the upstream and downstream sector of oil while overseeing PGN's performance.

Pertamina and PGN are scheduled to hold a general meeting of shareholders in the near future. One of the discussions is the changes in the company's budgets.

ALI NY | ANTARA