Oil giants Petronas, Pertamina consider merger
The national oil companies of Malaysia and Indonesia could enter a close cooperation or even merge to expand their businesses together, Indonesian President Joko Widodo said on August 9 during a state visit to Kuala Lumpur.
Asked during an interview if he had considered the prospects of cooperation between Malaysia’s Petroliam Nasional Bhd (Petronas) and Indonesia’s PT Pertamina, Widodo said: “(It) can be. Petronas and Pertamina could collaborate or be merged as one to become a large enterprise with more capacity, capital and equity.”
“These two enterprises, I think, are already like brother and sister. We can expand together to other countries, we can look for oil together, we can export downstream products to other countries,” he added in an interview with Astro Awani television.
Jokowi said the move would give both companies “a significant advantage,” especially financially, to further enlarge their businesses.
“I also think now is the time to work not also as state-owned enterprises, but also in the form of business-to-business partnerships,” he added.
Petronas, founded in 1974, is wholly owned by the government of Malaysia and is ranked among Fortune Global 500’s largest corporations in the world. The oil and gas giant, which is also active in the petrochemical industry, in shipping, automotive engineering and property investment, recorded net profit of $13.2 billion on the back of a revenue of $60 billion in 2018. Petronas employs around 51,000 people in Malaysia and overseas.
Pertamina, in turn, created in August 1968 by the merger of oil and gas firms Pertamin and Permina, is wholly owned by the Indonesian state and the country’s only company in the Fortune Global 500. The firm’s net profit in 2018 amounted to $2.53 billion at a revenue of $57.9 billion. Pertamina employs around 27,300 people and is also active in renewable energies, energy trading, retail and shipping.
The national oil companies of Malaysia and Indonesia could enter a close cooperation or even merge to expand their businesses together, Indonesian President Joko Widodo said on August 9 during a state visit to Kuala Lumpur. Asked during an interview if he had considered the prospects of cooperation between Malaysia’s Petroliam Nasional Bhd (Petronas) and Indonesia’s PT Pertamina, Widodo said: “(It) can be. Petronas and Pertamina could collaborate or be merged as one to become a large enterprise with more capacity, capital and equity.” “These two enterprises, I think, are already like brother and sister. We can expand together to...
The national oil companies of Malaysia and Indonesia could enter a close cooperation or even merge to expand their businesses together, Indonesian President Joko Widodo said on August 9 during a state visit to Kuala Lumpur.
Asked during an interview if he had considered the prospects of cooperation between Malaysia’s Petroliam Nasional Bhd (Petronas) and Indonesia’s PT Pertamina, Widodo said: “(It) can be. Petronas and Pertamina could collaborate or be merged as one to become a large enterprise with more capacity, capital and equity.”
“These two enterprises, I think, are already like brother and sister. We can expand together to other countries, we can look for oil together, we can export downstream products to other countries,” he added in an interview with Astro Awani television.
Jokowi said the move would give both companies “a significant advantage,” especially financially, to further enlarge their businesses.
“I also think now is the time to work not also as state-owned enterprises, but also in the form of business-to-business partnerships,” he added.
Petronas, founded in 1974, is wholly owned by the government of Malaysia and is ranked among Fortune Global 500’s largest corporations in the world. The oil and gas giant, which is also active in the petrochemical industry, in shipping, automotive engineering and property investment, recorded net profit of $13.2 billion on the back of a revenue of $60 billion in 2018. Petronas employs around 51,000 people in Malaysia and overseas.
Pertamina, in turn, created in August 1968 by the merger of oil and gas firms Pertamin and Permina, is wholly owned by the Indonesian state and the country’s only company in the Fortune Global 500. The firm’s net profit in 2018 amounted to $2.53 billion at a revenue of $57.9 billion. Pertamina employs around 27,300 people and is also active in renewable energies, energy trading, retail and shipping.
