Petronas & Bakrie
Few months ago, Malaysia's Petronas signed the MoU to set up a consortium to bid for the development of gas pipeline from East Kalimantan to East Java. Yesterday, the consortium won the bid, beating listed state-owned gas transmission company PT Perusahaan Gas Negara (PGN) Tbk. How serious is Petronas?
While no details of share ownership in the Bakrie consortium, Petronas will likely play a key role in the pipeline and would only strengthen the Malaysian grip in Indonesian gas transmission business.
In 2002, PETRONAS International Corporation Ltd. (PICL) through Transasia Pipeline Company Pvt. Ltd. (Transasia), acquired 40 per cent stake in PT Transportasi Gas Indonesia (TGI). TGI is a subsidiary of PT Perusahaan Gas Negara (PGN), Indonesia's state-owned gas transmission company.
TGI currently owns and operates the 536-km Grissik-Duri transmission pipeline. The Grissik-Duri pipeline runs from the Corridor Block gas plant to the Duri Oil field. Its current throughput capacity is at 430 mmscfd.
Apart from the Grissik-Duri pipeline, TGI also own and operate the Grissik-Batam-Singapore pipeline. The 468-km pipeline transport gas from Sumatera to Singapore at a capacity of 350 mmscfd.
Transasia is a joint venture company incorporated in the Mauritius comprising a consortium involving PICL (35 per cent), CONOCO Indonesia Holdings Ltd (35 per cent), SPC Indo-Pipeline Co. Ltd. (15 per cent) and Talisman Transgasindo Ltd. (15 per cent). PICL is a wholly-owned international investment arm of PETRONAS.
The interest in TGI marks PETRONAS' entry into the gas transportation business in Indonesia and signifies an important move for PETRONAS in the diversification and expansion of its business portfolio in Indonesia, in line with its long-term investment commitment in that country.
PETRONAS' other activities in Indonesia include upstream business and oil trading. Its exploration and production arm PETRONAS Carigali Sdn Bhd currently has interests in the Jabung block onshore Sumatera and the Tanjung Aru block offshore Kalimantan, and operates the Ketapang and Karapan blocks offshore Java. Recently, PETRONAS started receiving natural gas from Indonesia, transported via pipeline from West Natuna in Indonesian waters to its facilities offshore Terengganu.
Petronas also owns North East Madura IV Ltd. a production-sharing contract for the North East Madura Offshore Block IV.
In 2004, Petronas Carigali Overseas Sdn. acquired Muriah Block PSC held by a unit of oil major BP PLC. Last month Petronas Carigali was awarded the Lampung 2 block in South Sumatra.
Bakrie, on the other side, involved in most of PGN's gas pipeline projects as pipe supplier. The East Kalimantan-East Java gas pipeline would ultimately boost Bakrie's pipe manufacturing business. So, Indonesia's pipeline projects are pretty much in the same hands.
READ MORE!!!
While no details of share ownership in the Bakrie consortium, Petronas will likely play a key role in the pipeline and would only strengthen the Malaysian grip in Indonesian gas transmission business.
In 2002, PETRONAS International Corporation Ltd. (PICL) through Transasia Pipeline Company Pvt. Ltd. (Transasia), acquired 40 per cent stake in PT Transportasi Gas Indonesia (TGI). TGI is a subsidiary of PT Perusahaan Gas Negara (PGN), Indonesia's state-owned gas transmission company.
TGI currently owns and operates the 536-km Grissik-Duri transmission pipeline. The Grissik-Duri pipeline runs from the Corridor Block gas plant to the Duri Oil field. Its current throughput capacity is at 430 mmscfd.
Apart from the Grissik-Duri pipeline, TGI also own and operate the Grissik-Batam-Singapore pipeline. The 468-km pipeline transport gas from Sumatera to Singapore at a capacity of 350 mmscfd.
Transasia is a joint venture company incorporated in the Mauritius comprising a consortium involving PICL (35 per cent), CONOCO Indonesia Holdings Ltd (35 per cent), SPC Indo-Pipeline Co. Ltd. (15 per cent) and Talisman Transgasindo Ltd. (15 per cent). PICL is a wholly-owned international investment arm of PETRONAS.
The interest in TGI marks PETRONAS' entry into the gas transportation business in Indonesia and signifies an important move for PETRONAS in the diversification and expansion of its business portfolio in Indonesia, in line with its long-term investment commitment in that country.
PETRONAS' other activities in Indonesia include upstream business and oil trading. Its exploration and production arm PETRONAS Carigali Sdn Bhd currently has interests in the Jabung block onshore Sumatera and the Tanjung Aru block offshore Kalimantan, and operates the Ketapang and Karapan blocks offshore Java. Recently, PETRONAS started receiving natural gas from Indonesia, transported via pipeline from West Natuna in Indonesian waters to its facilities offshore Terengganu.
Petronas also owns North East Madura IV Ltd. a production-sharing contract for the North East Madura Offshore Block IV.
In 2004, Petronas Carigali Overseas Sdn. acquired Muriah Block PSC held by a unit of oil major BP PLC. Last month Petronas Carigali was awarded the Lampung 2 block in South Sumatra.
Bakrie, on the other side, involved in most of PGN's gas pipeline projects as pipe supplier. The East Kalimantan-East Java gas pipeline would ultimately boost Bakrie's pipe manufacturing business. So, Indonesia's pipeline projects are pretty much in the same hands.
READ MORE!!!
posted by yosef at 8:03 PM
2 Comments:
Do you have any sense in terms of what the 'common' Indonesian think of all these big business deals? Are they very much indifferent?
All about money, money, money....
With good "positive-morale" intentions, money can be useful,
but we all see that it's just greed that drives them:
1) greed to be the BIGGEST
2) greed to be the WEALTHIEST
3) greed to be the RICHEST
etc, etc,
I doubt they will take all that monies at the time the died....
Sad But True....
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