Page 8 - AsianOil Week 26 2021

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Pertamina’s shipping arm

unveils $4bn asset upgrade plan

PIPELINES & THE shipping arm of Indonesia’s state-owned
TRANSPORT Pertamina has unveiled plans to invest $4bn to
upgrade its vessels and terminals over the next
seven years.
Pertamina International Shipping (PIS)
intends to replace 23 vessels and expand its fleet,
director of business planning Wisnu Medan San-
toso told Reuters on June 25.
The executive said the investment would
ensure compliance with the latest International
Maritime Organisation (IMO) standards, which
were introduced on January 1, 2020. The IMO
rules require the global tanker fleet to use fuel Pertamina president director Nicke Widya-
with a sulphur content of no more than 0.5% – wati said at the time that following the inaugura-
down from the previous cap of 3.5%. tion, PIS was officially responsible for managing
Santoso also said his company was looking to 750 vessels – of which 540 are owned and the rest
diversify its client base beyond its parent com- leased – as well as six ports and oil product and
pany, whose affiliates account for 95% of the liquid petroleum gas (LPG) terminals.
shipping arm’s customers. The Indonesian government undertook
“There are many oil and gas players in [the a major restructuring of Pertamina last year,
Association of Southeast Asian Nations] ASEAN reducing the number of board members from
who do not have their own shipping arm; we see 11 to six as well as merging various subsidiaries
this as an opportunity,” Santoso added. “We have into a handful of sub-holdings. Thohir said at the
a large captive cargo, we have a large economy of time that the goal was to hold initial public offer-
scale. We can utilise that to capture opportunities ings (IPOs) for its sub-holdings within the next
in ASEAN.” couple of years.
While Pertamina created PIS in 2016, “The target is to have one or two sub-hold-
the shipping company was inaugurated as ings to go public within two years. This is part of
a sub-holding of the state major in May this efforts to improve transparency and their capa-
year. Commenting at PIS’ inauguration cer- bilities,” Thohir said. “It’s time for consolidation
emony on May 5, State-Owned Enterprises and efficiencies.”
(SOE) Minister Erick Thohir said the move Commenting on the government’s financing
was PIS’ first big step towards strengthening goals, Wisnu said: “Capital expenditure cannot rely
its position in the energy and marine logis- on external loans 100%. The method may vary... the
tics sectors. important thing is that our plan is firm.”™

Petronas rethinks African

investment strategy

FINANCE & MALAYSIA’S state-owned Petronas is not only resilient and commercially viable,” the state-
INVESTMENT rethinking its participation in South Sudan’s first owned company told local Malaysian business
oil licensing round but is also reportedly looking daily The Edge Markets. “Therefore, Petronas
to exit South Africa’s fuel retail sector. may not be participating in the South Sudan’s
The company said on July 1 that it might not first licensing round this year.”
invest in South Sudan because of current market The landlocked East African state launched
challenges, without specifying what those chal- its first oil licensing auction on June 23, offering
lenges were. five blocks – A2, A5, B1, B4 and D2.
“Due to challenging market conditions, The South Sudanese Ministry of Petroleum
Petronas is undertaking a strategic review of said at the time: “The oil licensing round aims to
its assets to ensure that its portfolio remains attract interest from a diverse group of foreign

P8 www. NEWSBASE .com Week 26 01•July•2021