Wednesday, 19 June 2019 | 10:38 WIB

Oil-Gas Holding Officially Established, PGN Becomes Subsidiary of Pertamina

PT Perusahaan Gas Negara (PGN) (eksplorasi)

JAKARTA, NNC - Minister of State Owned Enterprises (SOE) Rini M Soemarno officially signed the deed of transfer of shares of Series B of State by 56.96 percent in PT Perusahaan Gas Negara (Persero) Tbk or PGN to PT Pertamina (Persero). With the signing of the deed, the Holding of BUMN Migas is officially established with Pertamina as holding company and PGN as a holding member.

The formation of holding BUMN Migas is in accordance with the direction of the President in October 2016 as outlined in the Roadmap Development of SOEs that have been coordinated with various related parties.

Deputy for Mining Business, Strategic Industry and Media F. Harry Sampurno said the next step is the integration process of PT Pertagas which is a subsidiary of Pertamina to PGN. So PGN will become a Sub-Holding Gas under Pertamina. The joint team from Pertamina and PGN continues to complete the integration plan with the goal of achieving sound financial consolidation and optimal tax planning.

"With the entry of PT Pertagas to PGN, PGN will become the midstream manager until distribution and commercial gas" said Harry in Jakarta, Wednesday (4/11/2018).

He explained that the Minister of SOE has also approved the amendment of Pertamina's Articles of Association related to the change or increase of capital and also approved the integration of PT Pertagas into PGN.

Meanwhile, several considerations submitted by the Pertamina Board of Directors in integrating Pertagas into PGN, among others; the same line of business in terms of transportation and gas trade, thee potential for operational cost savings and Capex due to loss of overlap in infrastructure development, can create an integrated gas infrastructure.

In addition, PGN's incorporation into Pertamina is believed to create sound consolidated financial performance, strengthening PGN's capital structure so as to open space to increase debt capacity for the development of the gas business; and increase the dividend and tax payments to the state.