Pertamina Needs US$1.4 Bln to Buy Shell's PI in Masela Block

By Editorial Team 06/10/2022
Gedung Pusat Pertamina
Summary

PT Pertamina has to spend at least US$1.4 billion to purchase Shell Upstream Overseas Ltd's 35 percent participating interest (PI) in the Masela Block. Upstream Oil and Gas Special Regulatory Task Force (SKK Migas) head Dwi Soetjipto revealed that it was the amount of money spent by the Dutch energy company for the oil and gas work area located in Maluku so far.

Nevertheless, he emphasized that it was not the minimum figure that Pertamina or other potential investors must pay to acquire Shell's PI in the Masela Block. The acquisition value will depend on a business-to-business (B to B) discussion between Shell and potential buyers. "So, if some company wants to replace Shell, it will have to negotiate with Shell how much the cost will be. The cash out is already clear, whether [the price of the 35 percent PI] will be the same will depend on what Shell has strategized," he explained on Tuesday.

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