Batam, Riau Islands, (ANTARA News) - The integration process of state-owned companies PT Perusahaan Gas Negara (PGN) and PT Pertamina Gas (Pertagas) is targeted to be completed by mid-December 2018.
PGN Finance Director Said Riza Pahlevi told Antara in Batam on Saturday that the integration process was as a follow-up to the establishment of Oil and Gas State-owned Enterprises (SOE) Holding under state-owned oil and gas firm PT Pertamina
Actually, the integration process of the two companies engaged in the management and distribution of natural gas had undergone a delay.
"There have been changes to the scenario after we signed the Conditional Sales Purchase Agreement (CSPA) with Pertagas on June 28, 2018," he said.
He explained, after signing the CSPA, PGN had 90 days before its closing that would fall on September 29, 2018.
But in the process, there were four subsidiaries of PT Pertagas which forced the change in the integration process. Yet Pahlevi ensured that PGN would continue to acquire PT Pertagas and its subsidiaries in accordance with the provisions set out in the government white paper.
He explained that currently PGN is still finalizing the auditing and re-evaluating process, including the acquisition of four subsidiaries of PT Pertagas, which according to the schedule will end on December 21, 2018.
The four PT Pertagas subsidiaries which are still in the administrative and the re-valuation stage are PT Perta Arun Gas, PT Perta Daya Gas, PT Perta-Samtan GAS and PT Pertagas Kalimantan Gas.
PT PGNs Managing Director Gigih Prakoso explained, the initial plan for Pertagas acquisition concerned businesses related to natural gas management. However, there are four PT Pertagas subsidiaries that are not in line with the original plan based on PT PGNs main business sector, namely in the natural gas management.
PT Perta Daya Gas is engaged in electricity while PT Perta-Samtan GAS manages LPG business. Prakoso stressed that PGN would be guided by the governments white paper in implementing the integration plan.
"At the beginning of the CSPA, we only focused on the Pertagas section which was in line with the main business with PGN. So, some of the business sector that are not related to natural gas are cut out. But we remain consistent with the white paper of the government. We agree that November or December will be completed. Four Pertagas subsidiaries were included in the investment," said Prakoso.
Establishment of state-owned oil and gas holding begins with government approval through the issuance of Government Regulation No. 6 of 2018 concerning the Addition of State Capital Participation of the Republic of Indonesia into PT Pertamina which was signed on February 28, 2018.
Source: ANTARA News