JAKARTA. PT Pertamina Hulu Energi (PHE) is gearing up towards its initial public offering (IPO) in the first half of 2023. The proceeds of this IPO is said to be channelled to oil and gas field acquisition.

Arya Sinulingga, Special Staff of Minister of State-Owned Enterprise (SOE), explained that the IPO proceeds of PHE will be used to boost the volume of oil production as most of domestic oil supply is covered by import, while domestic demand for oil continues to increase.

According to Sinulingga, PHE has to initiate expansion, because the production keeps declining, while the need consistently grows. “If we do not expand, import will probably increase,” he added during an event earlier this week.

Thus, the expansion will utilise the proceeds of IPO, including oil and gas field acquisition. “It could be an acquisition, new well drilling, or anything. The point is the composition between import and local production will be fulfilled,” Sinulingga added.

Although Sinulingga did not specifically name the targeted IPO proceeds of PHE, he wished it would be higher than what PT Pertamina Geothermal Energy Tbk (PGEO) gained during its IPO. In its IPO, PGEO managed to raise IDR 9.05 trillion of fresh funds. (AM/ZH)