Pertamina doubles 2007 capex

State owned oil and gas company Pertamina's shareholders meeting approved Tuesday the company's proposal to more than double capital expenditure to about Rp 14.6 trillion this year from about Rp 6.3 trillion in 2006.

Pertamina's finance director Frederick Siahaan said in Jakarta on Tuesday that the company had secured loan worth about US$500 million or about Rp 4.5 trillion from a syndication of local and international banks to partly finance the capital expenditure.

"Pertamina would seek other lending facilities or issue bonds to finance the remaining capital expenditures," he told reporters following the company's shareholders meeting. He added that larger parts of the capital expenditure would be used to further develop the Cepu and Pondok Tengah oil blocks.

According to Frederick, Pertamina is targeting total revenues of about Rp 300 trillion this year, down from Rp 355 trillion in 2006. The larger part of revenues last year were contributed by the company's fuel retail business.

Meanwhile Kun Kurnaely, the president director of Pertamina's subsidiary for exploration and production Pertamina EP, said that the company will boost drilling activities at least 23 exploration wells and 145 development wells this year from last year?s drilling activities 6 exploration wells and 96 development wells.

For this year, Pertamina EP is targeting to increase crude oil production to 118,000 barrels per day from about 102,000 barrels per day, last year and gas production to 1,319 MMSCFD from 944 MMSCFD in 2006. (godang)