TEMPO.CO, Jakarta - State energy company Pertamina plans to reinforce the structure of its overseas subsidiary, Pertamina International Exploration and Production (PIEP). The restructuring is aimed to allow PIEP be more aggressive in controlling Pertamina's oil and gas assets abroad.
"We look to Petronas as a role model to invest more," Pertamina's finance director Arief Budiman said last weekend.
Arief said PIEP's current equity of US$15 billion (Rp199 trillion) is considerably small to compete in the global oil and gas business. PIEP will be given independent authority to take corporate actions, such as looking for new oil and gas fields. Pertamina also plans to make PIEP financially independent so it can seek its own funding. In addition, Pertamina will have PIEP in charge of overseas assets independently.
According to Arief, Pertamina will spend US$ 1 billion to obtain a majority stake in French oil company Maurel et Prom, which will be placed under PIEP's management. Pertamina will maintain Maurel's status as a public company to facilitate capital-sourcing in Europe. The acquisition of Maurel is also aimed at having control over oil fields in Gabon and Tanzania.
Last year, PIEP produced 113,000 barrels of oil equivalent per day (BOEPD), which was higher that an initial target of 93,000 BOEPD. The largest output came from oil and gas fields in Algeria, amounting to 39,000 BOEPD, followed by Malaysia and Iraq with 38,000 BOEPD and 36,000 BOEPD, respectively.
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