Pertamina orders two tankers from South Korea's Hyundai.(Corporate Highlights)(Brief Article)

Indonesian Investment Highlights, March, 2004

PT Pertamina has asked South Korea's Hyundai to build two 260,000-DWT tankers valued at US$160 million as part of 14 tankers valued at US$570 million planned by the state-owned oil company. The order to the Korean ship builder followed failure of Pertamina to launch an in international tender for 14 tankers flying Indonesian flag as Indonesia has not adopted the international mortgage law.

The two types of tanker--VLCC (very large crude carrier)--to be built by Hyundai will fly the Panama flag until Pertamina repays its debt to financers. The two ships are now under construction expected to be completed between July and September this year.