TEMPO.CO, Jakarta - State-owned oil and gas company Pertamina is aiming to acquire Repsol’s participation rights in Menzel Lejmat North (MLN) Block in Algeria. Deputy CEO of Pertamina Ahmad Bambang stated that the company is still in the process of negotiating and has not reached any deal.
Bambang stated that Repsol intends to sell their participation rights because of their current financial difficulties. "Their financial condition isn't great. They plan to sell their participation right," Bambang said on Tuesday, December 13, 2016.
Bambang said that Pertamina is ready to purchase the company's participation rights. “We currently have the money, which is why we [decided to] expand," Bambang said. However, Bambang was reluctant to mention the amount of funds that must be prepared by Pertamina.
Pertamina's Financial Director Arief Budiman said that the cost of Repsol's participation rights is not listed in the company's capital expenditure for 2017. "If it is included, the capital expenditure will increase," Arief said.
According to Arief, Pertamina has prepared around US$5 billion to US$6 billion to support corporate actions in Iran and Russia, and to acquire new oil and gas block. Arief added that 60 percent of the company's capital expenditure will be distributed to the upstream sector.