[Kabar-indonesia] 15 OIl/Gas/Mining Reports: EMP-Lapindo; KPC; Bumi; Bontang; Elnusa; Pertamina

[Joyo at aol.com]

15 articles / Joyo Indonesia New Service:

- Indonesia's Energi says to divest
  Lapindo interest

- BI: KPC's EBITDA Fails to
  Meet Target

- Indonesia's Bumi Resources suspects
  hostile take over bid

- Platts: Indonesia's Bontang LNG plant
  plans switch to coal for power

- Indonesia's Elnusa plans to sell
  20 pct stake via IPO

- Indonesia crude output down,
  fuel imports steady

- Indonesia sees steady Oct fuel
  imports -Pertamina

- Indonesia to increase subsidized
  fuel supply

- Indonesia's Pertamina restarts
  Dumai gasoline unit

- Indonesia's Pertamina to hold tender
  for household LPG cylinders this mth

- Indonesian govt to review plan to
  integrate state mining cos

- Platts: Santos finds oil, gas with first
  wildcat in Indonesia Sampang PSC

- ConocoPhilips sells stakes in East
  Java offshore gas block

- Singapore's Technics Oil & Gas in
  new alliances to tap leasing business

- Indonesia Asahan Aluminum loses at
  US$1.65 bln since start up

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

Indonesia's Energi says to divest Lapindo interest

JAKARTA, September 5 (Reuters) - Indonesian oil
exploration firm PT Energi Mega Persada Tbk said on
Tuesday it plans to sell its stakes in two firms that
control PT Lapindo Brantas -- the operator of a
troubled oil and gas block.

Lapindo holds a 50 percent stake in the Brantas block,
which has suffered a major drilling accident causing
hot mud to flow from near an oil well innundating
surrounding villages and causing an unfolding
environmental disaster.

"Energi plans to divest its ownership in (two
companies) which together own 99.9 percent stakes in
Lapindo Brantas Inc." the company said in a statement.

Energi said the two companies, Kalila Energy Limited
and Pan Asia Enterprise Limited, would be sold to a
company fully controlled by the family of Indonesia's
chief social welfare minister Aburizal Bakrie.

The family also controls Energi.

"This intended divestment is expected to maintain
Energi's financial and operational performance while
at the same time Lapindo's commitment towards the
mudflow situation will be fully supported by Bakrie's
group," Energi added.

The company said the transaction was expected to occur
in the near future. It did not give financial details.

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

Bisnis Indonesia September 5, 2006

KPC's EBITDA Fails to Meet Target

JAKARTA: The total earning before interest, tax,
depreciation, and amortization (EBITDA) of two
subsidiaries of publicly listed PT Bumi Resourves, KPC
and Arutmin, in the first semester of 2006 is
estimated to reach only US$118 million, or way below
target.

An investment banker knowing the information explained
that PT Kaltim Prima Coal's (KPC) EBITDA in the first
semester this year was estimated to decline to only
US$60 million-US$62 million, while PT Arutmin's EBITDA
was predicted to reach US$54 million-US$56 million.

Early this year, the two coal companies were targeted
to contribute US$480 million in EBITDA to Bumi
Resources. One of the reasons why the total EBITDA of
the two companies declines is the soaring production
costs triggered by the high stripping ratio (the ratio
between the volumes of lands dug and those of coal
deposits taken).

Combined, the two subsidiaries only book US$118
million in EBITDA or US$236 million in total this
year, which is far below US$480 million targeted.

"It seems a little bit strange if one says that the
declining EBITDA is caused by the high rain
precipitation rate," argued the investment banker on
Friday last week.

According to him, with such EBITDA, KPC and Arutmin
only contributed IDR44 in net profit per share to Bumi
Resources.

In the first semester this year, he continued, KPC and
Arutmin produced 15 million tons and 8 million tons of
coal, respectively. The declining financial
performance of the coal companies is the main reason
behind the cancellation of the divestitures of KPC and
Arutmin.

Unfortunately, Bumi and Borneo Lumbung Energi as the
potential buyers declined to explain the reason behind
the cancellation of the divestitures.

When asked via email on Wednesday last week, Bumi's
board of directors declined to make direct answer to
questions about KPC's and Arutmin's EBITDAs. The
management of Bumi stated that in the first quarter of
2006, the company produced 23 million tons of coal and
sold 23.1 million tons of coal.

In the first quarter of 2006, Bumi's average sales
price was US$39.9 per ton and it rose by 3.2% to
US$41.2 in the second quarter.

Meanwhile, the mining costs in the second quarter this
year climbed by 11% from that in the first quarter.

At the public expose on Wednesday last week, President
Director of Bumi Ary S. Hudaya also declined to reveal
the targets of EBITDA set for KPC and Arutmin in 2006.

Analyst at PT Trimegah Securities Sebastian Tobing
viewed that the declining coal production in the first
semester was probably caused by heavy rain. When asked
on KPC, Sebastian told that if the total EBITDA only
reached US$60 million-US$62 million in the first
semester, it meant that KPC's EBITDA was far below the
target. Last year, Bumi's EBITDA hit IDR3.46 trillion
or US$372.42 million (assuming the rupiah exchange
rate against the US dollar is IDR9,300 per US$).

He disclosed that KPC's EBITDA should be at least
twice of that of Arutmin or over US$100 million.

Another foreign investment banker added that with the
declining performance of KPC, it would be difficult
for Bumi to seek US$1.1 billion in loans to refinance
its US$800 million debts and to serve as working
capital.

Financial Director of Bumi Resources Eddie J. Soebari
inserted that the company was still calculating the
amount of money needed. "We have talked about
refinancing and, to be sure, we have appointed Credit
Suisse to help us seeking the funds," he exposed.

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

Indonesia's Bumi Resources suspects hostile take over
bid

JAKARTA, September 5 (Asia Pulse/Antara) - The owners
of the country's largest coal producer PT Bumi
Resources (ASX:BUMI) said they suspect a hostile
takeover attempt directed at its two coal mining
subsidiaries.

An executive of the Bakrie Group, which holds the
controlling stake in Bumi Resources said there are
attempts to spread negative issues about PT Kaltim
Prima Coal (KPC) and PT Arutmin Indonesia.

Those behind the issues want to see the prices of KPC
and Arutmin fall in the market and then buy them at
cheap prices,' the executive, who refused to be
identified, said.

Bumi Resources have failed to sell KPC and Arutmin and
two other smaller subsidiaries at a price of around
US$3.2 billion to Borneo Lumbung.

Meanwhile, the newspaper Bisnis Indonesia reported
Rajawali Group Corps and U.S. firm Farallon Capital
Management L.L.C. have indicated interest in buying
KPC and Arutmin, said.

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Platts Commodity News September 5, 2006

Indonesia's Bontang LNG plant plans switch to coal for
power

In a bid to save more gas for exports, Indonesia has
decided to convert the gas-fired generators powering
its Bontang liquefied natural gas faciliy in East
Kalimantan into coal-fired ones, energy minister
Purnomo Yusgiantoro said Tuesday.

Converting the power plants into coal-fired units
would save around 220 million cubic feet of gas daily,
equivalent to 22 LNG cargoes annually, Purnomo said.
This would alleviate the LNG production shortage faced
by Indonesia due to quicker-than-expected decline in
gas reserves at its East Kalimantan fields. The
country has been forced to cut its term LNG exports in
the last couple of years.

The $600-million conversion project for the 16 Bontang
power units, each of 12.5MW, is expected to be
completed by 2009.

The government intends to appoint a third party to
undertake the conversion project, said Purnomo.

"If we carry out the program ourselves, it will be
done only by 2010-2011. If we appoint a third party,
the job can be completed by 2009," Purnomo said.

"We need more gas. On the other hand, we have much
coal reserves. This (switching from gas to coal) can
also reduce our LNG export shortage," Purnomo said.

East Kalimantan province is home to the country's
largest coal miners such as Katim Prima Coal and
Kideco Jaya.

Meanwhile, Indonesia said in late June that its LNG
customers have agreed to reduce their contractual
offtake this year by 79 cargoes, a deeper cut than the
original 55 cargoes agreed to early this year. The
79-cargo reduction will comprise 9 cargoes from the
Arun LNG plant in North Sumatra and 70 from the
Bontang plant.

Indonesia originally had a commitment to supply its
LNG customers with 450 cargoes this year, of which 76
were to come from the Arun liquefaction facility and
374 from the Bontang plant.

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Indonesia's Elnusa plans to sell 20 pct stake via IPO

JAKARTA, September 5 (XFN-ASIA) - PT Elnusa is
planning to sell a 20 pct stake via an initial public
offering (IPO), pending approval from its controlling
shareholder, state oil and gas firm PT Pertamina,
Elnusa president Rudy Radjab said.

"We hope to carry out the plan in the immediate
future," he told reporters, without providing a
specific timetable.

Pertamina and PT Tri Daya Esta are Elnusa's major
shareholders, holding 51.38 pct and 46.44 pct stakes,
respectively. The remaining shares are owned by
Danareksa Daiwa Nif Ventures, Elnusa employees'
pension fund and cooperatives.

Radjab said Elnusa will use the IPO proceeds to
strengthen the working capital of its subsidiaries.
and to support management's business plan, which aims
to increase Elnusa's sales to 6 trln rupiah in 2009
from 1.7 trln rupiah estimated for this year.

"It is a realistic target," he said.

He added that the company hopes to book net profit of
100 bln rupiah this year.

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

Indonesia crude output down, fuel imports steady

JAKARTA, September 4 (Reuters) - Indonesian crude oil
production fell again in August, extending successive
drops to the lowest level in more than three decades,
an official said on Monday.

"There are technical problems at several oil wells
that caused production to fall in August, but we
expected 10,000-15,000 bpd of additional output from
other fields in September," an official with regulator
BPMIGAS told reporters.

Indonesia, OPEC's second-smallest member, pumped
860,500 barrels per day (bpd) in August, down from
887,000 bpd of crude in July, the lowest in three and
a half decades.

Condensate production eased to 124,000 bpd in August,
the official said, down from 131,000 bpd in July.

Indonesia exports some of its crude production but
imports about the same amount to provide the best
slate of crude to its 1 million bpd refining complex,
which supplies about three-quarters of the country's
demand.

Separately, an official with state oil firm Pertamina
said oil product imports were expected to hold steady
in October at around 10-11 million barrels.

Hanung Budya, deputy director of marketing at
Pertamina, told reporters that Indonesia would import
about 5-6 million barrels of diesel and 2.8-3.4
million barrels of gasoline.

On Aug. 11, Industry sources estimated Indonesia's
total fuel imports at 10.9 million barrels for August,
including 6.0 million barrels of diesel and 3.9
million barrels of gasoline.

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

Indonesia sees steady Oct fuel imports -Pertamina

JAKARTA, September 4 (Reuters) - Indonesia is set to
keep oil product imports steady next month at about
10-11 million barrels, a senior official with state
oil company Pertamina said on Monday.

Hanung Budya, deputy director of marketing at
Pertamina, told reporters that Indonesia would import
about 5-6 million barrels of diesel and 2.8-3.4
million barrels of gasoline.

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

Indonesia to increase subsidized fuel supply

JAKARTA, September 4 (Xinhua) -- The Indonesian
government plans to increase supply quota of
subsidized fuel products to 39.81 million kiloliters
in 2007 from the estimated supply of 37.9 million
kiloliters in 2006.

Fuel products that enjoy government subsidy to keep
prices low include gasoline, diesel and kerosene for
transport and household consumption.

The prices of high octane gasoline and kerosene and
diesel fuel for industry are determined by the market.

According to a government report submitted to the
House of Representatives Monday, subsidized gasoline
consumption is projected to increase by 2.71 percent
to 17.46 kiloliters and diesel fuel consumption to
surge by 16.7 percent to 12.84 million kiloliters.

But subsidized kerosene consumption is estimated to
fall 3.94 percent to 9.51 million kiloliters.

Indonesia, the only OPEC member in Southeast Asia, has
regularly allocated huge subsidies to keep domestic
fuel prices artificially low.

Subsidized gasoline is sold at 4,500 rupiah (around 50
U.S. cents) per liter.

The government plans to allocate 68.6 trillion rupiah
(around 7. 5 billion U.S. dollars) in fuel subsidy in
its 2007 draft budget.

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Indonesia's Pertamina restarts Dumai gasoline unit

JAKARTA, September 5 (Reuters) - Indonesia's Pertamina
restarted its 8,000 barrels per day (bpd)
gasoline-making platfomer unit at Dumai refinery on
Sept. 1 after a regular maintenance lasting about 20
days, an official with the state oil firm said on
Tuesday.

"The unit is running fine so far at about 60 percent
capacity, we will increase the capacity gradually,"
Pertamina's processing director, Suroso Atmomartoyo,
told Reuters.

Pertamina has two gasoline-making units at the
120,000-bpd Dumai refinery in Central Sumatra's Riau
province. The other has a capacity of 6,000 bpd.

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

The country is set to keep oil product imports steady
next month at about 10-11 million barrels, Hanung
Budya, deputy director of marketing at Pertamina, has
said.

He said Indonesia would import about 5-6 million
barrels of diesel and 2.8-3.4 million barrels of
gasoline in Oct.

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Indonesia's Pertamina to hold tender for household LPG
cylinders this mth

JAKARTA, September 4 (XFN-ASIA) - State oil and gas
company PT Pertamina said it will hold a tender later
this month for the production of 800,000 liquefied
petroleum gas (LPG) cylinders that will be distributed
free of charge to households, a company official said.

It said Pertamina will allot 569 bln rupiah for the
manufacture of the cylinders.

Seven companies, all from East Java, have so far
expressed an interest in participating in the tender,
Pertamina's marketing director Achmad Faisal said.

The decision to supply the cylinders for free is part
of the government's moves to replace subsidised
kerosene with LPG, in order to cut the state's fuel
subsidies by 42 trln rupiah a year. Kerosene is widely
used by poor households.

Pertamina has estimated that annual consumption of
567,000 tons of LPG could reduce kerosene consumption
by 988,279 kiloters per annum, for a saving on
subsidies of up to 743 bln rupiah.

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Indonesian govt to review plan to integrate state
mining cos

JAKARTA, September 5 (Asia Pulse/Antara) - The
Indonesian government will review a plan to integrate
or merge state mining companies, a spokesman said.

"I have received a report on the plan to integrate
state mining companies. However, I have not read it.
There will be a presentation (on this plan), and I
will be asked to review it," State Minister of State
Enterprises (BUMN) Sugiharto said at the Finance
Ministry in Jakarta on Monday after attending a
coordinating meeting on the state budget.

The review would include aspects on finance, manpower,
working capital and taxation.

Among the state mining companies to be merged were PT
Aneka Tambang Tbk (JSX:ANTM), PT Timah (Tin) Tbk and
PT Batubara (Coal) Bukit Asam (JSX:PTBA).

The government is preparing three alternatives
regarding the merging of the three state mining
companies.

The first alternative is to form a holding company
under the flag of PT Indonesia Resources Company
(IRC); the second it to set up a holding company
without operating the merged companies, and the last
alternative is to change the operational company into
a savior company which will be followed by the
issuance of new shares changeable with company shares.

Minister Sugiharto however, did not elaborate whether
the IRC will be a holding company or not.

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Platts Commodity News September 5, 2006

Santos finds oil, gas with first wildcat in Indonesia
Sampang PSC

Australian oil company Santos has discovered oil and
gas at its Sampang production sharing contract in East
Java, Indonesia.

The PSC's first exploration well, Wortel-1, flowed
18.5 million cu ft/day of gas and 130 b/d of oil, a
senior official at upstream regulator BPMigas said
Tuesday. Santos will now be drilling several more
wells in the area, he added.

Santos is the operator of Sampang PSC with a 40.5%
stake. The remaining equity is distributed among
Singapore Petroleum Corp. (36%), Cue Energy (13.5%)
and local company Petrogas Oyong Jatim (10%).

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ConocoPhilips sells stakes in East Java offshore gas
block

JAKARTA, September 5 (Asia Pulse/Antara) -
ConocoPhilips has sold its stake in all offshore gas
blocks it has in East Java and plans to develop
existing blocks elswhere in Indonesia, an official
confirmed.

The U.S. company, the fifth largest gas producer in
the country , also plans to sell the Ujung Pangkah and
the Ketapang block off Madura, a deputy at the
Upstream Oil and Gas Regulatory Body (BP Migas)
Achamad Luthfi said.

"The reason I heard is that they want to concentrate
on developing gas blocks they have in Aceh, South
Sumatra and Eastern Indonesia," Luthfi said.

He said ConocoPhilips would make first offer to its
partner Malaysia's Petronas for the Ketapang block and
to Amerada Hess its partner in Ujung Pangkah.

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Singapore's Technics Oil & Gas in new alliances to tap
leasing business

SINGAPORE, September 5 (XFN-ASIA) - Technics Oil & Gas
Ltd said it has formed a joint venture with an
Indonesian firm to lease gas compressor units to
companies in the oil and gas industry.

The joint venture company will be 51-pct owned by
Technics' wholly owned Indonesian unit PT Technics
Offshore Jaya, while the Indonesian partner, which was
not named, will hold the balance. Financial details
such as how much the joint venture will be capitalized
were not disclosed.

Technics said its wholly owned offshore engineering
unit also signed a 4.8 mln sgd agreement with the
Singapore unit of Dubai-based Global Process Systems
(GPS) Ltd to lease offshore equipment to the latter
for three years at a fixed rate and an option for
extension.

Under the deal, Technics also has the first right of
refusal to undertake GPS' contract engineering project
work for mobile offshore production units and floating
production storage & offloading process topsides.

'Our foraging of strategic partnerships in new
business segments will enhance our prospects going
forward, paving the way for the group to tap a new
customer base in the leasing business and generate new
earnings stream,' Technics managing director Robin
Ting said.

'We anticipate our partnership with GPS will yield
more contract engineering projects for the group,' he
added.

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Indonesia Asahan Aluminum loses at US$1.65 bln since
start up

JAKARTA, September 5 (Asia Pulse/Antara) - PT
Indonesia Asahan Aluminium (Inalum) has accumulated
losses at US$1.65 billion from the year it started
operation in 1982 until last year.

The losses suffered by the joint venture between the
Indonesian government and a number of Japanese
companies were caused by heavier debt burden in yen,
which has appreciated against the U.S. dollar, it
general director Rahardjo said.

The company has a debt of 411 billion yen ((US$3.5
billion) used to build the aluminum ingot factory in
North Sumatra, Rahardjo said, adding sales were paid
in U.S. dollars.

At the time the debt was signed a U.S. dollar was
worth 220 yen; now it is only 110 yen, he pointed out.

He said the company always posted operating profit
averaging US$25 million annually with sales totaling
US$300 million.

The factory has an annual production capacity of
250,000 tons and in 2005 it posted an operating profit
of US$120 million.

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Joyo Indonesia News Service
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