Pertamina International Shipping (PIS), the new unit of Indonesia’s state run oil company, Pertamina, would be spending US $4 billion, in the next seven years, to upgrade and refurbish it’s fleet of vessels and terminals.
“There are many oil and gas players in ASEAN who do not have their own shipping arm, we see this as an opportunity” said the Director of Business Planning at Pertamina, Wisnu Medan Santoso.
The new unit is planning to replace about twenty-three vessels and expand the fleet. This would be done to ensure compliance with the latest International Maritime Organization (IMO) standards and serve other regional companies eventually
PIS currently has a large fleet of cargo, and a large economy of scale. They are looking forward in utilizing the two, to capture opportunities in South East Asian countries.
Last year, Pertamina declared that PIS is looking forward to launching an Initial Public Offering (IPO) within the two years. “Capital expenditure cannot rely on external loans 100%. The method may vary. The important thing is that our plan is firm” Wisnu said.
Earlier this month, Pertamina was put on a watchlist for removal from JPMorgan’s ESG EMBI index, after its scores fell below a required threshold for inclusion.
PIS, with this investment would be looking forward to being a green shipping company and gradually stop the usage of fossil fuels. Thus being a player in the ongoing race to achieve maximum sustainability in the shipping industry. “In the long run we will try to reduce (our) dependence on fuel cargo transportation. We must diversify” said Wisnu.