June 14, 2004
Legislators could kill Pertamina tanker deal
Plans by Indonesian state oil company Pertamina to sell two newbuild VLCC's could hit a legislative hurdle.
A story in today's Jakarta Post quotes Irwan Prayitno, a member of the Indonesian House of Representatives Commission VIII for energy and mining, said that based on information gathered during a recent visit to Hong Kong and South Korea, he and other commission members had concluded that it was best for Pertamina to keep the two ships.
The Jakarta Post notes that the two tankers were ordered by Pertamina's previous management under president director Baihaki Hakim for a total of US$130 million in 2002. The newspaper reports that the current management under president director Ariffi Nawawi has said it wants to sell the tankers, citing cash flow problems while arguing that it is cheaper to transport fuel and crude using leased tankers.