Eric Watkins
Senior Correspondent
LOS ANGELES, Apr. 19 -- The Indonesian government has granted state-owned PT Pertamina the right to acquire a 15% stake in every oil and gas block controlled by production-sharing contractors. Pertamina has been seeking investment incentives.
The ruling will be included in a revised government regulation, according to the Oil and Gas Directorate General. No date was mentioned for the ruling to be included in the revision regulation.
OGDG said the special right does not violate Indonesia's Oil and Gas Law, which already requires production-sharing contractors to make as much as 49% of their shares available.
While Pertamina has the option of using the right, it must have the capital necessary to purchase any stakes it desires, OGDG said.
The ruling followed an announcement by Pertamina in early April that it made a net profit of 19 trillion rupiah in 2006, a 19% increase over 2005. The company said it had capital spending plans totaling 14 trillion rupiah in 2007, of which about 10 trillion rupiah would go towards upstream projects.
Contact Eric Watkins at [email protected].
