SSEK Advises Pertamina on Creation of Indonesian Oil and Gas Holding Company
SSEK Legal Consultants has advised on the formation of the Indonesian Oil and Gas Holding SOE, a USD 4 billion deal that results in the creation of Indonesia\'s largest state-owned holding company. The deal closed on December 28, 2018.
SSEK worked on this two-stage deal since 2012. We represented the Indonesian Ministry of State-Owned Enterprises in the first stage of the deal, and then acted for PT Pertamina, the Indonesian state-owned oil and natural gas corporation, in the second stage.
In the first stage of the formation of the Indonesian Oil and Gas Holding Company, Government of Indonesia (GOI) Class B shares in Perusahaan Gas Negara (PGN), Indonesia's largest natural gas transportation and distribution company, were transferred to Pertamina, resulting in an additional USD 2.7 billion (equivalent to IDR 38 trillion) capital owned by the GOI in Pertamina.
In the recently completed second stage, 51% of shares in Pertamina subsidiary PT Pertamina Gas (Pertagas) owned by Pertamina were transferred to PGN with a purchase price of USD 1.35 billion (equivalent to IDR 20 trillion).
The Oil and Gas Holding SOE is intended to synergize and enhance the efficiency of the gas business in Indonesia. During the closing of the deal, the Deputy for Mining, Strategic Industries and Media at the Indonesian Ministry of State-Owned Enterprises, Mr. Fajar Harry Sampurno, was quoted as saying, \"The Oil and Gas Holding SOE is the largest state capital participation in the history of the GOI, amounting to a total of IDR 58 trillion.‚Äù
The SSEK team advising on the deal was led by founding partner Ira A. Eddymurthy and partner Dewi Savitri Reni, with assistance from senior associate Tengku Almira Adlinisa.
We congratulate the Ministry of State-Owned Enterprises, Pertamina, PGN and Pertagas on the deal, and we wish all the very best for the Oil and Gas Holding SOE.
SSEK Legal Consultants is a leading full-service corporate and commercial law firm based in Jakarta, Indonesia. Since its founding in Jakarta in 1992, SSEK has grown to one of the largest and most highly regarded corporate law firms in Indonesia. SSEK is recognized by independent legal directories including Chambers & Partners, The Legal 500 and Asia Law as a leading law firm in Indonesia across all major practice areas including banking and finance, capital markets, corporate law and mergers and acquisitions, construction and real estates, energy and natural resources, IT and telecommunications, labor and employment, project finance, restructuring and insolvency, and shipping. SSEK has been named the Indonesian Law Firm of the Year on multiple occasions.