The inauguration of PGN pipeline installation (ANTARA)
PT Perusahaan Gas Negara Tbk (PGN) allocates US$500 million (Rp6.5 trillion) for this year’s capital expenditures (capex). Financial Director of PGN, Nusantara Suryono, explained that most of the capital expenditures will be distributed to PGN’s subsidiary PT Saka Energi Indonesia.
The subsidiary that engages upstream sector business received US$300 million (Rp3.9 trillion) for the capital expenditures. "Why they received so much because Saka implements PSC system, everytime we provide cash call, it’s known as capex. It’s just the system," he explained at Four Season Hotel, Thursday (4/5).
Meanwhile, the remaining capital expenditures will be consolidated. PGN is developing a submarine gas pipeline with the length of 123 km in Central Sumatera, and its facilities with the length of 5 km in Riau Archipelago. PGN also develops the other gas pipelines in West Java and Surabaya.
"So, some of the capital expenditures are for us, and most of them are for Saka," he said.
Nusantara said that the source of fund for the capital expenditures will be from the plan of subsidiary Saka Energy Indonesia that wants to issue foreign exchange bonds. The fund from the bonds issuance will be used for refinancing, and the remaining fund will be used for consolidated capital expenditures.
"From the funds raised from the subsidiary, some of the funds will be returned to us, and we will use them for the capital expenditures," he said.