Govt to review Pertamina`s upstream business
Saturday, January 24 2015 - 05:21 AM WIB
"The upstream business of Pertamina will be reviewed (soon)," Sofyan said on the sidelines of World Economic Forum in Davos, Switzerland, as quoted by Antara news agency.
He said he has learned a new approach to managing national oil and gas after holding a series of economic dialogs and discussions with oil and gas experts and businessmen at the forum.
"Many global oil and gas agents have cancelled their large projects due to a shortfall in the global oil prices," he said, adding that some companies have reviewed marginal projects.
In view of this trend, Sofyan said, Pertamina as a state-owned company must exercise caution with regard to its upstream business.
He said that Pertamina is currently carrying out several exploration projects based on an assumption of global oil price of US$100 per barrel, he remarked, while adding that oil is expected to continue falling.
Therefore, he added, the government will review the upstream business of Pertamina in response to the downward trend of the global oil prices, he pointed out.
He explained that the government will review Pertaminas large projects, including the purchase of new oil fields abroad and the takeover of expired oil and gas contracts.
"We will appoint a steering committee for that purpose," he stated.
He clarified that the construction of new refineries will not be reviewed since Indonesia had last built an oil refinery in Balongan, West Java, in 1986.(*)