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JAKARTA (RambuEnergy.com) – The government prioritizes the establishment of sub-holding gas as part of the government’s move to create a holding oil and gas (Holding Migas). The sub-holding gas is targeted to be completed by March this year, Fajar Harry Sampoerno, Deputy State Enterprise Ministry, said on Tuesday.
Under the plan, all state-owned gas companies, PT Perusahaan Gas Negara Tbk, PT Pertamina Gas (Pertagas), will be grouped under sub-holding gas.
The government is in the process of setting up of oil and gas holding company, in which Pertamina as the holding firm. The holding firm will have four sub-holdings, namely Upstream, Processing, Retail and Gas.
PGN and Pertagas have found several scheme options to integrate the companies’ operation, including merger, acquisition, or inbreng (asset handover). The inbreng scheme is likely to be adopted, as it will not involve cash transfers, said Sampurno.
Pertagas currently has assets of US$1.81 billion and net profit of US$96.65 million as third quarter 2017. While, PGN posted revenues of US$2.16 billion in the nine months to September and a net profit of US$98 million, the lowest in the last five years.
Observers said the creation of sub-holding will make the development of gas infrastructure in the country to be more effective as there is no need for the two companies to compete. (*)
