OREANDA-NEWS. November 14, 2012. PT Pertamina (Persero) proudly announces the plant to spin off of Lubricant Business Unit and part of the Shipping Function to become their own subsidiaries as part of the company strategic action to become World Class Energy Company, reported the press-centre of Pertamina.  

The spin off was planned based on the goal to put more focus effort in managing business potential and prospects in these two field in the future so that they can contribute more for Pertamina to reach its vision as World Class Energy Company.

Based on Law No. 40/ 2007 on Limited Company, the spin off of subsidiary can be done through stakeholder meeting that has to be conducted within 30 days of the announcement of the spin off plan.

"The plan for the spin off is according to the Company's long term strategy. We hope that these two will provide positive contribution for the Company to achieve its vision as World Class Energy Company," said Vice President Corporate Communication of Pertamina, Ali Mundakir.

With the spin off, Pertamina Lubricants is expected to continue to maintain its 60%  domestic market share and to become world top 20 lubricant company by 2015 with total sales volume of 700,000 KL. Pertamina is expected to increase its business portfolio by rapidly develop its global market and increase the operational excellence by being more responsive and speedy in decision making in facing future business challenges.

Despite the increasingly competitive business climate and competing with 210 players and 1,000 brands, Pertamina's domestic market share is the highest in the highest in the world, growing at an average of 10% annually.

On the other hand, Pertamina export performance has been increasing since its initiation in 2007. Now Pertamina's lubricants are available in 22 countries through various lubricant brands.

"The control of more than half of domestic market share is never happened in any country in the world. For the future, Pertamina through Pertamina Lubricants is determined to continue its market penetration, be it domestic as well as export market through middle-low  lubricant products as well as top tier products that have been produced by the Company," Ali said.

Meanwhile, the increasing energy demand in global and domestic market, as well as more business-conducive shipping regulation have become essential factors for the establishment of Pertamina Shipping that will focus on developing business for gas (LPG and LNG) shipping, FSO/FPSO, and oil tankers in medium size and above.

Pertamina Shipping will develop market in global shipping sector with the initial target of developing the market through Pertamina's internal and subsidiaries, such as PT Pertamina Hulu Energy, PT Pertamina EP, Petral, PT Pertamina Gas, and more.