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Pertamina is ready to acquire oil and gas blocks in Abu Dhabi to crank its productivity. The performance has been underwhelming. (Image via CNN Indonesia)
Pertamina to acquire oil and gas blocks in Abu Dhabi
Indonesia’s state-owned oil and gas enterprise, PT Pertamina (Persero), revealed the plan to acquire oil and gas blocks in Abu Dhabi, United Arab Emirates (UAE). Pertamina will focus on the already-productive blocks.By acquiring these oil and gas blocks, it hopes to crank the oil and gas' productivity in Pertamina. Especially, judging from the fact that the domestic oil and gas productions still fall short, unable to fulfill the current demands.
President Director of Pertamina, Nicke Widyawati, unveiled the details of the plan to acquire the Arabian oil and gas blocks. Pertamina aimed to acquire the blocks belonging to Mubadala and Abu Dhabi National Oil Company (ADNOC). Nicke said that Pertamina had done exploratory on the productive blocks.
But why the productive blocks? Nicke pointed out that Pertamina chose productive oil and gas blocks in Abu Dhabi to avoid repeating the corruption scandal once occurred during the term of former President Director Karen Agustiawan.
Previously, Karen was caught misusing her authority in a corruption scandal in 2009 involving the Basker Manta Gummy (BMG) Block belonging to ROC Oil Limiter, Australia. Through the subsidiary company of Pertamina, PT Pertamina Hulu Energi, Karen and Pertamina acquired 10 percent of shares in the Basker Manta Gummy (BMG) Block.
The verdict stated that Karen caused Indonesia to lose Rp 568 billion and ruined Pertamina’s corporate governance. Due to the corruption scandal, Karen was sentenced to eight-year imprisonment, seven years lesser than the demand at 15 years, and a Rp 1 billion fine.
Therefore, to avoid such scandal from reoccurring, Nicke said that Pertamina also cooperated with certain law enforcers for the acquisition planning.
Source: https://bit.ly/36wsXdu
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