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Pertamina Now Controling Shareholder at France's Second Biggest Oil Company

BY :MUHAMAD AL AZHARI

JANUARY 29, 2017

Jakarta. Pertamina International Exploration and Production, a subsidiary of Indonesia's state energy company Pertamina, announced another successful bid for more stake in French oil company Maurel and Prom, that increased its ownership at the Paris-based company from 24.53 percent to 64.46 percent.

In a statement dated Jan. 26 published on Pertamina's website, starting Feb. 1 PIEP will control 125.9 million stocks and voting rights at Maurel and Prom, equivalent to a 64.46 percent holding stake and 63.35 percent of the voting rights at France's second biggest oil company.

"Our winning bid has been announced by the Autorité des Marchés Financiers (AMF) on Jan. 25," Pertamina said in the statement.

Pertamina's president director Dwi Soetjipto said the success of the bid should create a momentum for Pertamina to expand more aggressively overseas amid improving global crude oil prices.

Once Pertamina becomes Maurel and Prom's controlling shareholder — i.e., when it has increased its ownership by more than 51 percent — it can then further consolidate the French company's production with PIEP's own production.

"It will certainly improve Pertamina's own performance. In addition, ISC [Integrated Supply Chain] is currently also reviewing and preparing oil production which will not only increase Pertamina's production value, but also strengthen the supply to Indonesia," Dwi said.

ISC is Pertamina's new vehicle for buying oil, replacing the controversial Petral.

Pertamina's upstream production director Syamsu Alam said the company sees bright prospects in developing Maurel and Prom, which has up to 205 million barrels of oil equivalent among its oil and gas assets.

With assets spread across Europe, America, Africa and Asia, Pertamina now expects to catch up soon with other oil producers on a global scale.

Pertamina Vice President of Corporate Communication Wianda Pusponegoro said in the statement: "We expect maximum results for PIEP and Pertamina from the purchase of Maurel and Prom."

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