Five Reasons Why Pertamina BOD Matters, Minister Says
Minister for state-owned enterprises Sugiharto explains five things that should have been done and should be done in the future at Pertamina. These same might also be used to make the case on replacing Pertamina's board of directors amid critics that government planned to kick out the current board for their stubborn rejection on ExxonMobil as the operator of giant Cepu oil field.
Antara quoted Sugiharto on these reasons as follows:
First, Pertamina need to boost oil production. The state-owned company's oil production significantly dropped to around 30,000 barrel to 40,000 barrel per day, far below the foreign companies like Chevron or even local companies like Medco Energi. Total national output was around 1 million barrel per day at the end of 2005.
Second, Pertamina should improve its communication with government in a more transparent way to reduce or to prevent problems like scarcity of fuel supply in some areas last year. Sugiharto blamed on poor internal communication at Pertamina that caused late reports. Sugiharto also stated that Pertamina's 2006 budget failed to meet the January 31st deadline.
Third, Pertamina should boost its competitiveness in domestic and overseas market. Major oil companies like Shell and Malaysia's Petronas have increasingly heads on Pertamina in local retail fuel market.
Fourth, Pertamina's restructuring has been in the slow pace in the last two years.
Fifth, Pertamina needs to work closely with foreign oil contractors like in the development of Cepu block.
Do a simple rhetoric analysis, we might easily find Sugiharto's statement was very much strengthening the earlier statement made by President Susilo Bambang Yudhoyono. I concluded earlier that the President had given strong signal to replace the current board of Pertamina. But he needs good reasons to do that. Off course these reasons might not easily convince those who believe that the replacement has something to do with other reasons that too-bad-to-be-true or to-good-to-be-true.
Antara quoted Sugiharto on these reasons as follows:
First, Pertamina need to boost oil production. The state-owned company's oil production significantly dropped to around 30,000 barrel to 40,000 barrel per day, far below the foreign companies like Chevron or even local companies like Medco Energi. Total national output was around 1 million barrel per day at the end of 2005.
Second, Pertamina should improve its communication with government in a more transparent way to reduce or to prevent problems like scarcity of fuel supply in some areas last year. Sugiharto blamed on poor internal communication at Pertamina that caused late reports. Sugiharto also stated that Pertamina's 2006 budget failed to meet the January 31st deadline.
Third, Pertamina should boost its competitiveness in domestic and overseas market. Major oil companies like Shell and Malaysia's Petronas have increasingly heads on Pertamina in local retail fuel market.
Fourth, Pertamina's restructuring has been in the slow pace in the last two years.
Fifth, Pertamina needs to work closely with foreign oil contractors like in the development of Cepu block.
Do a simple rhetoric analysis, we might easily find Sugiharto's statement was very much strengthening the earlier statement made by President Susilo Bambang Yudhoyono. I concluded earlier that the President had given strong signal to replace the current board of Pertamina. But he needs good reasons to do that. Off course these reasons might not easily convince those who believe that the replacement has something to do with other reasons that too-bad-to-be-true or to-good-to-be-true.
Labels: CHEVRON, ExxonMobil, Medco, Pertamina, Sugiharto
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posted by yosef at 12:17 AM
2 Comments:
Berita mengenai Pertamina sangat menarik untuk diikuti.
indeed barry. as the largest company in Indonesia with so much money at stake, it's just normal to have so many people want to know what's going on there. Did you know that the BOD just gave bonus to Pertamina workers at 8 months salary? Wish my company could do that.
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