[Kabar-indonesia] 12 OIl/Gas/Mining Reports: Sumalindo; Bumi; Pertamina; Gas Negara; Ojolali

[Joyo at aol.com]

12 articles:

- Indonesia's Bumi still seeking new
  buyers for mines
- Foreign shareholder acquire 22% of
  Indonesia's Sumalindo
- Indonesia's Pertamina looks at entering
  electricity sector within 5 yrs
- Pertamina in LNG plant talks with Mitsubishi,
  Medco
- Indonesia's oil and gas revenues predicted to
  shrink 6.8% in 2007
- Pertamina says oil product stocks at
  23.5 days
- Indonesia's Pertamina shuts Dumai
  gasoline unit
- Indonesia Expects To Raise IDR3T From
  Selling Gas Negara
- Gas Swap Program to Secure Supply to
  PIM Continued
- Japan, Malaysia to build biodiesel plant in
  Jambi
- Pertamina Continues to Build Up Indonesia's
  Market for Biofuels
- Finders says Ojolali drilling confirms gold
  mineralization

--------------

Indonesia's Bumi still seeking new buyers for mines

JAKARTA, Aug 25 (Reuters) - Indonesian mining company
PT Bumi Resources Tbk said on Friday it is still
seeking new buyers for its coal mines despite the
scrapping of a $3.2 billion deal to sell them to PT
Borneo Lumbung Energi.

Eddie Soebari, Bumi's finance director, said some
Indonesian and European firms had shown interest in
the mines.

--------------------------------------------------------------

Foreign shareholder acquire 22% of Indonesia's
Sumalindo

JAKARTA, August 25 (Asia Pulse/Antara) - Two new
foreign shareholders have acquired 22 per cent of
integrated timber company PT Sumalindo (JSX:SULI)
through a rights issue.

SC-Singapore TR AC Clients and MS+Co. Inc Client
bought 15 per cent and 9 per cent of the shares
respectively, Sumalindo said in a statement on
Wednesday, the newspaper Bisnis Indonesia reported on
Thursday.

Other shareholders of the company include PT Sumber
Graha Sejahtera, UOB Kay Hian Pte Ltd, Asia Capital
Management Limited, Barito Pacific Timber (JSX:BRPT)
and the investing public.

The company earned Rp155 billion (US$17.2 million)
from the rights issue which was completed on Aug 14,
the statement said.

The company needs the funds to build a 15-megawatt
power plant.

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Indonesia's Pertamina looks at entering electricity
sector within 5 yrs

JAKARTA, August 24 (XFN-ASIA) - State oil and gas firm
PT Pertamina is looking at becoming an electricity
producer within the next five years, marketing and
commerce deputy director Hanung Budya said.

'Going forward, Pertamina wants to enter the
electricity sector' Budya told reporters.

The firm is currently involved in upstream and
downstream oil and gas operations.

Budya said the firm has the facilities now that would
allow it to produce power to be onsold to state power
distributor PT Perusahaan Listrik Negara.

'In the next five years, we want to be known not only
for our success in fuel distribution but also for
power generation,' he said.

Recently the government opened up fuel distribution
for competition but players involved are currently
restricted to sales of non-subsidized fuel products
for now.

------------------------------------------------------------

Pertamina in LNG plant talks with Mitsubishi, Medco

JAKARTA, August 23 (Reuters) - Indonesian state oil
firm Pertamina is in talks with Japan's Mitsubishi
Corp. and domestic energy firm Medco to build a
liquefied natural gas (LNG) plant on Sulawesi island,
a Pertamina official said on Wednesday.

Pertamina and Indonesia's largest listed energy firm,
Medco Energi International , will tap their combined
natural gas reserves of 2.4 trillion cubic feet in
Sulawesi for the plant, said Pertamina's deputy
upstream director, Tri Siwindono.

"We are still in talks to build an LNG plant with a
production capacity of between 2.0-2.5 million tonnes
per year," Siwindono told reporters.

He said production from the $600 million plant was
likely to begin in 2010 for 15 years and the LNG was
expected to be exported to Japan, or to supply a
domestic receiving terminal that state utility PLN
plans to build on Java island.

State electricity firm PT Perusahaan Listrik Negara
(PLN) has said it planned to build a receiving LNG
terminal to secure gas feedstock for its power plants
in Java island.

Medco director Lukman Mahfoedz expects the
engineering, procurement and construction of the LNG
plant in Sulawesi to be tendered by the end of this
year.

The plant will give more revenue to Pertamina and
Medco as well as the Indonesian government.

Indonesia, Asia Pacific's only OPEC member, which has
far more gas than oil, is encouraging oil contractors
to develop gas fields to meet domestic demand
following higher global oil prices.

Indonesia is the world's top LNG exporter but has been
struggling to meet export commitments due to declining
gas output being diverted to the domestic market.

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Indonesia's oil and gas revenues predicted to shrink
6.8% in 2007

JAKARTA, August 22 (Asia Pulse/Antara) - The Indonesia
government targets 6.8 per cent decline in oil and gas
revenues next years to Rp145.88 trillion (US$16.2
billion) from this year's target of Rp156.49 trillion.

Oil revenues alone are forecast to shrink 10.44 per
cent to Rp108.47 trillion with crude oil production
unchanged from 1 million barrels per day and prices
assumed at US$64-US$65 a barrel.

The decline is caused more by an extra revenue in 2006
in arrears from the previous year paid by state-owned
Pertamina, and expected strengthening of the rupiah
against the U.S. dollar.

Oil and gas sector is forecast to account for 71.2 per
cent of the state non tax income or 20.4 per cent of
the total state income and grants in 2007.

State income from the general mining sector is
forecast to rise 19 per cent to Rp3.65 trillion
including royalty and fixed fees.

-------------------------------------------------------

Pertamina says oil product stocks at 23.5 days

JAKARTA, August 23 (Reuters) - Indonesian state oil
and gas company PT Pertamina's oil product stocks have
increased to 23.5 days of demand, company officials
said on Wednesday.

This was up slightly from about 23 days worth of
consumption in mid-July from from under 20 days in
June.

---------------------------------------------------------

Indonesia's Pertamina shuts Dumai gasoline unit

JAKARTA, August 24 (Reuters) - Indonesian state oil
firm Pertamina shut its 8,000 barrels per day (bpd)
gasoline-making platfomer unit at the 120,000-bpd
Dumai refinery on Aug. 16 for about 20 days of regular
maintenance, a company official said on Thursday.

"This is a small unit so there will be no impact on
domestic gasoline supply," Pertamina's processing
director, Suroso Atmomartoyo, told Reuters.

Pertamina has two gasoline-making units at the Dumai
refinery in Central Sumatra's Riau province. The other
has a capacity of 6,000 bpd.

Separately, another Pertamina official said domestic
oil products stocks were sufficient at about 23.5 days
of demand.

Indonesia is Asia's top diesel and gasoline importer,
tendering each month for large spot volumes that can
drive benchmark regional prices.

It is expected to import nearly 11 million barrels of
products for September, traders say.

Indonesia has nine oil refineries scattered across the
archipelago with a total combined capacity of around 1
million bpd, but about 30 percent of Indonesia's oil
products consumption is still imported.

---------------------------------------------------------

Indonesia Expects To Raise IDR3T From Selling Gas
Negara

JAKARTA, August 23 (Dow Jones)--The Indonesian
government expects to raise IDR3 trillion ($331
million) by selling a 5.31% stake, or 185.8 million
shares, in gas distributor PT Gas Negara (PGAS.JK), a
minister said Tuesday.

"We expect to complete the stake sale in Gas Negara
within three months," Minister of State Enterprises'
Affairs Sugiharto told reporters, without providing a
detailed timetable.

He said the government expects the stake sale in Gas
Negara to enable it to meet its privatization target,
which aims to see the sale of assets worth around IDR3
trillion this year.

"The government is holding a 'beauty contest' to name
an adviser for the stake sale," he added.

The government currently holds 60.12% of Gas Negara.

At 0435 GMT, Gas Negara shares were down 4.8% at
IDR12,950 on the Jakarta Stock Exchange. Analysts said
that in order to raise the targeted IDR3 trillion, the
government must sell the stake in Gas Negara at around
IDR16,000 a share.

The proceeds from the sale are to be used to help
cover the state budget deficit in 2006. The government
expects this year's state budget deficit to be 1.2% of
gross domestic product, or around IDR37.6 trillion.

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Bisnis Indonesia 
August 23, 2006

Gas Swap Program to Secure Supply to PIM Continued

JAKARTA: The government secures the gas supply to the
fertilizer plant of PT Pupuk Iskandar Muda (PIM) next
year by continuing the gas swap scheme.

Minister of Industry Fahmi Idris said there had been
some alternatives available to secure gas supply to
PIM.

"The one that has been running is the gas swap scheme,
in which some of gas supply to Pupuk Kaltim is shifted
to PIM," he said after the inauguration of the Chief
Judge of the Constitutional Court yesterday.

The gas swap contract between PIM and Pupuk Kaltim
will only continue for a year and PIM will only
receive 3 cargoes of gas, which are only enough to
operate plant for six months.

According to Fahmi, the gas swap program with Pupuk
Kaltim would still be continued next yea. In the long
term, the government would seek gas supply from
overseas, such as from Qatar.

Fahmi added that Qatar had offered to procure gas in a
large volume to PIM.

Liquidation of AAF

In the meantime, the House of Representatives stated
that they rejected the government's plan of
liquidating and selling the fertilizer plant of PT
Aceh Asean Fertilizer (AAF) located in Lhokseumawe,
Nanggroe Aceh Darussalam.

The House criticized that the plant's sales price of
IDR400 billion was too small compared to its IDR4
trillion in asset value.

According to the House Vice Chairperson Muhaimin
Iskandar, the House could not accept the sales of the
plant since it still could produce fertilizer for 360
days non-stop.

As quoted by Antara, member of the House Commission VI
from the Democratic Party Faction Azam Azman
Natawijana disclosed that the liquidation of AAF
should be legalized by a Governmental Regulation.

However, he added, there had been no such governmental
regulation made so far to justify the sale.

"The sale of AAF violates the law, so it will be
better to cancel it," he noted.

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Japan. Malaysia to build biodiesel plant in Jambi

JAMBI, August 25 (Asia Pulse/Antara) - Japanese and
Malaysian investors have established cooperation with
27 oil palm factories to build a biodiesel processing
plant in Jambi, according to Erwan Malik, head of the
Regional Capital Investment Board here on Thursday.

Malik made the remarks during a coordination meeting
of the Regional Capital Investment which was opened by
Deputy Governor H Antony Zeidra Abidin.

He said that the biodiesel plant would need some
20,000 tons of crude plam oil per month and was
expected to serve as the embryo of the establishment
of a biodiesel company to be managed by a regional
government owned company in Jambi.

The investors are also exploring the possibility of
jatropha curcas plantations in oder to meet the raw
materials to be processed into a biodiesel energy.

There are also three investors from Australia,
Thailand and Malaysia, who are seeking lands in Jambi
to be planted with jatropha curcas plants.

Malik said that the presence of the first biodiesel
plant was expected to boost the investment values in
Jambi in line with the rapid growth of foreign and
domestic investment in this province.

Jambi's economic growth in 2002 was recorded at 4.93
percent and in 2004 it stood at 5.38 percent and in
2005 5.57 percent.

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Global Insight Daily Analysis 
August 23, 2006

Pertamina Continues to Build Up Indonesia's Market for
Biofuels

Steven Knell

In the wake of having launched the country's
first-ever biofuel at forecourts in the capital,
Jakarta, in May, Pertamina is now bringing its
"biosolar" fuel mix to the country's second-largest
city, Surabaya, in East Java (see Indonesia: 16 May
2006: ). According to a statement issued by the
company, the biofuel will retail at the same price as
conventional diesel, 4,300 rupiah (US$0.48) per litre,
and will be available at five service stations in
Surabaya.Significance: Pertamina's "biosolar" mix is
made up of diesel fuel and an additive created by the
etherification of palm oil, known as fatty acid methyl
ester (FAME). Initial sales across Surabaya have been
in the area of 80,000 litres per day. Pertamina's
domestic production base has continued to depreciate,
and the move into alternative fuels marks a bid to
prolong the life of its conventional fuel supplies.

It is also conducting initial commercial trials of its
"biopremium" fuel, which contains 5% ethanol and 95%
gasoline (petrol), in Malang.

The further growth and consolidation of the country's
biofuels sector may be predicated upon loosening
existing price restrictions, given that biofuels enjoy
cost advantages vis-à-vis conventional fuel stocks.

---------------------------------------------------------

Finders says Ojolali drilling confirms gold
mineralization

LONDON, August 24 (AFX) - Finders Resources, the
operator of the Ojolali gold-silver project in
Indonesia, today announced that wide zones of
near-surface oxide gold mineralization have been
confirmed by drilling at its Jambi bulk open pit
prospect.

The company said metallurgical testing is underway and
a systematic drill-out of the deposit has commenced.

Finders said the deposit provides the company with an
opportunity for near-term gold production, targeting
50,000 oz/yr. Mineralization is close to the surface,
it added, indicating the potential for a low-cost
open-pit operation.

The company also said that new vein targets adjacent
to the Jambi, Tambang and Batu Kuning prospects have
been identified by geophysics.

These targets will be drill tested over the next
quarter.

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Joyo Indonesia News Service
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