VIVAnews - State oil company PT Pertamina increases its share ownership in Donggi Senoro Liquid Natural Gas (LNG) downstream project consortium with PT Medco Energi International Tbk. and Mitsubishi by two percent, adding the percentage to 31 percent.
Pertamina President Director Karen Agustiawan said the company has held a discussion with Medco, which now owns 20 percent of shares and will decrease to 18 percent by virtue of Pertamina's plan.
"We have talked with Medco and they may approve [the plan]," she said during a hearing with the Commission VII of House of Representatives in Jakarta on Monday, May 25.
She stated that the present oil price as well as the 29 percent of share ownership will only provide by 6 to 7 percent investment of rate return (IRR). Agustiawan said the company will propose loans from the Japan Bank for International Cooperation (JBIC) for the project construction.
For the time being, Pertamina owns 29 percent of ownership of the DSLNG project; Mitsubishi possess 51 percent; and Medco controls 20 percent.
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Translated by: Ariyantri E. Tarman
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27 April 2024
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