Acquisition of PT Pertamina Gas by PT Perusahaan Gas Negara Tbk. (Indonesian Oil and Gas Industry Consolidation)
Closing a major deal is one of the best ways to close a successful year. On 28 December 2018, PGN completed the US$1.35 billion (equivalent to Rp20 trillion) acquisition of 51% shares of PT Pertamina Gas (Pertagas) from PT Pertamina (Persero), signifying the completion of Indonesian Oil & Gas Holding Company formation. Fajar Sampurno, Deputy of Mining Business Sector of the Ministry of State-Owned Enterprises, conveyed that this deal represents Indonesia’s largest state capital participation in 2018.
Acting as PGN’s legal counsel in this exciting deal (led by our senior partners, Reggy Firmansyah and Ahmad Zakaria), we are extremely proud to be a part of Indonesia’s government strategic plan of establishing multiple state-owned holding companies that are intended to boost business synergies and efficiencies among Indonesian state-owned enterprises and ultimately, contribute to the betterment of Indonesian people.
On top of all, this crucial integration is expected to increase the role of the Indonesian Oil & Gas Holding Company in strengthening Indonesian oil & gas infrastructure as well as saving investment costs with no duplication of infrastructure development between PGN and Pertagas. Congratulations to PT Perusahaan Gas Negara (Persero) Tbk!