Pertamina allocates $5.3 billion for capex

State-owned oil and gas firm PT Pertamina has allocated US$5.3 billion for capital expenditure this year to support its upstream and downstream businesses.

?In our work and budget plant for 2016, we have allocated $5.3 billion for capex to increase upstream and downstream businesses,? said Pertamina Vice President for Corporate Communications Wianda Pusponegoro as quoted by Antara news agency Saturday, adding that the capex will be financed internally.

She said that about $4.7 billion will be allocated for the upstream business development, and the remainder for the downstream business.

Wianda said that in the upstream business, the company will continue to develop its existing oil and gas fields, and acquire overseas assets.

In the downstream side, Pertamina will increase the capacity of its refineries, and build and install new gas pipelines.

Wianda said that the company may increase the 2016 capex later on particularly as more funds are likely required in upgrading its oil refineries. As such, the company will seek alternative funding sources. (*)