Pertamina Shipping Unit to Spend $4 Billion on Fleet Upgrades

By Bernadette Christina and Fathin Ungku
Friday, June 25, 2021

Indonesia's state oil company Pertamina's new unit, Pertamina International Shipping (PIS), is looking to spend $4 billion in the next seven years to refurbish its fleet of vessels and upgrade terminals, a top official said on Friday.

The new unit plans to replace 23 vessels and expand its fleet, to ensure compliance with the latest International Maritime Organization standards and eventually serve other regional companies, said its director of business planning, Wisnu Medan Santoso.

"There are many oil and gas players in ASEAN who do not have their own shipping arm, we see this as an opportunity," Wisnu told Reuters, referring to countries of the Association of Southeast Asian Nations.

"We have a large captive cargo, we have a large economy of scale. We can utilize that to capture opportunities in ASEAN," he said, adding that only 5% of PIS' clients are non-Pertamina companies currently.

PIS is one of the new "sub-holding" units created by Pertamina last year, as part of a government effort to revamp hundreds of state companies.

Pertamina had said last year that the newly created units, including PIS, are slated to launch initial public offerings within two years.

"Capital expenditure cannot rely on external loans 100%. The method may vary... the important thing is that our plan is firm," Wisnu said.

Pertamina earlier this month was put on a watchlist for removal from JPMorgan's ESG EMBI index after its scores fell below a required threshold for inclusion.

Wisnu said that PIS will progress to be a green shipping company and gradually wean off transporting just fossil fuels.

"In the long run we will try to reduce (our) dependence on fuel cargo transportation... we must diversify," Wisnu said.


(Reporting by Bernadette Christina Munthe and Fathin Ungku; Editing by Martin Petty)

Categories: Shipbuilding Ship Repair & Conversion Tankers Vessels Oil Indonesia

Related Stories

Azeri SOCAR Plans New Agreements with Oil and Gas Majors

OMV Exits Ghasha Gas Project off UAE with Lukoil Stake Sale

China's Sinopec Laucnhes $690M Hydrogen Venture Capital Funds

CIP, ACEN Partner Up for First Large-Scale Offshore Wind Farm in Philippines

Valeura Concludes Eight-Well Drilling Campaign in Gulf of Thailand

BW Opal FPSO Vessel set for Work off Australia

Velesto’s Jack-Up Rig Set for Drilling Job off Indonesia

Turkey Discovers New Black Sea Gas Reserve

Indonesia's Medco Starts Production at Natuna Sea Fields

VARD Snags $125M Shipbuilding Deal for Subsea Construction Vessel

Current News

Aker Solutions, PTAS JV Hooks Brownfield Services Extension off Brunei

CDWE Wraps Up Pin Pile Installation Job for Taiwanese Offshore Wind Farm

BP Expands Oil and Gas Scope in Azerbaijan with New Projects and Exploration Rights

Azeri SOCAR Plans New Agreements with Oil and Gas Majors

TPAO, SOCAR and BP to Ink Caspian Sea Oil and Gas Production Deal

Fugro Lands Deepwater Gas Field Job in Southeast Asia

OMV Exits Ghasha Gas Project off UAE with Lukoil Stake Sale

China's Sinopec Laucnhes $690M Hydrogen Venture Capital Funds

CIP, ACEN Partner Up for First Large-Scale Offshore Wind Farm in Philippines

Valeura Concludes Eight-Well Drilling Campaign in Gulf of Thailand

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com