Indonesia's Pertamina Hulu Energi kicks off roadshow ahead of IPO -term sheet

SINGAPORE (Reuters) - The upstream unit of Indonesia's state energy company Pertamina, Pertamina Hulu Energi, kicked off an investor education roadshow on Tuesday ahead of an initial public offering (IPO), according to a term sheet seen by Reuters.

Pertamina Hulu declined to comment.

The company last month delayed its IPO plan over an administrative issue, Indonesia's financial regulator had said.

The company had been expected to sell a 10%-15% stake in the offering and raise, according to sources with knowledge of the matter, up to $2 billion from it.

At $2 billion, it would be Southeast Asia's biggest IPO this year, surpassing the planned $647 million IPO of Indonesian nickel company PT Trimegah Bangun Persada that is scheduled to debut on the exchange next month.

Pertamina Hulu plans to use most of the proceeds from the IPO to finance capital expenses for exploration and development activities as well as acquisitions of new oil and gas assets, according to the term sheet.

Citigroup, Credit Suisse and JPMorgan are joint bookrunners of the IPO, along with Indonesia's BRI Danareksa and Bank Mandiri.

(Reporting by Scott Murdoch in Sydney and Yantoultra Ngui in Singapore; Additional reporting by Bernadette Christina in Jakarta; Editing by Himani Sarkar)