State-owned PGN to acquire Pertagas in cash scheme

PT PERUSAHAAN GAS NEGARA TBK / PGN (PGAS) - JAKARTA. State-owned gas distributor PT Perusahaan Gas Negara Tbk (PGN / PGAS) will acquire state-owned energy firm Pertamina subsidiary PT Pertagas through a cash scheme, instead of an asset handover (inbreng), an official said in Jakarta on Wednesday.

"Yes it's true that PGN will acquire Pertagas under the cash scheme, not inbreng," the State-Owned Enterprises Ministry’s deputy for development and strategic industry affairs, Edwin Hidayat Abdullah, said on the sidelines of an SOE seminar.

He assured the planned deal would speed up a government plan to establish an oil and gas holding firm under the leadership of Pertamina, which was designed to control oil and gas upstream and downstream businesses.

"After becoming the holding company, Pertamina will be in charge of strategic decisions for the subsidiaries," he said.

PGN will be one of the holding members.

Previously, PGN corporate secretary Rachmat Hutama said it supported the holding firm’s establishment because it was part of an effort to improve the management of the country’s oil and gas industry.

“Establishing the holding will accelerate the construction of gas infrastructure and help expand gas distribution,” he said.  (srs/bbn)