Pertamina EP?s production reaches record high

Pertamina?s exploration and production unit PT Pertamina EP produced an average of 127,745 barrels per day (bpd) of crude oil in May, higher than the initial target of 125,000 bpd.

PT Pertamina EP said in a press release on Tuesday that the average production level during May was the highest ever recorded by the company and the result could be achieved thanks to the company?s more concentration on oil and gas exploration activities.

The company said that its operations in eastern Indonesia produced 5,567 bpd during the month, or 16 percent higher than the initial target. The increase in the production in eastern Indonesia was the highest among the company?s operation units.

The production at the Limau operation unit reached 11,210 bpd, about 10 percent higher than the target. Several other production units were able to maintain production level such as Java Region unit at 25,281 bpd, Sumatera region unit at 17,542 bpd, Sukowati unit at 22,986 bpd and Poleng Madura unit at 8,256 bpd.

Pertamina EP?s production has showed a continued growth since 2003. With a capital average gross ratio (CAGR) of 3.1 percent, the company?s production reached a total 95,600 bpd in 2003. The production level further increased to 102,200 bpd in 2006.

The production further increased to 110,300 bpd in 2007 and reached about 116,600 bpd in 2008. This year Pertamina EP is targeting to produce about 125,500 bpd.

Pertamina EP also produces about 1,040 million standard cubic feet per day (MMFCD) of natural gas, making the company as the largest gas supplier in the domestic market. About 28 percent of the total gas production is supplied to state owned gas distribution company PT Perusahaan Gas Negara (PGN), 18 percent to fertilizer producers, another 18 percent to state electricity company PT Perusahaan Listrik Negara (PLN) and the other 14 percent is used for the company?s refinery plants.

Pertamina EP?s profits also showed a significant increase in the past several years. The company?s profits reached Rp 11.29 trillion (US$=Rp 10,200) in 2006, rose to Rp 15.16 trillion in 2007 and to Rp 19.08 trillion in 2008. The earnings accounted for about 70 percent of Pertamina?s total profits. (*)