Pertamina EP to spend $2.2b up to end of 2008
Thursday, June 8 2006 - 12:47 AM WIB
Pertamina EP president Kun Kurnely said in Jakarta on Wednesday that of this figure, about Rp 11 trillion would be for capital expenditures and another Rp 11.1 trillion for operational expenditures.
He said the state-owned oil company planned to allocate another Rp 10.3 trillion for capital projects and Rp 13.8 trillion for operational expenditures in the subsequent three years up to the end of 2011.
For the three years ending in 2014, capital and operational expenditures will be increased to Rp 14.1 trillion and Hp 14.8 trillion, respectively.
?We want to raise our production by 20 percent each year,? Kun was quoted by Antara as saying. Based on the massive investment he described, he said he hoped the company?s production of oil and gas would reach 180,000 barrels and 2,000 million cubic feet respectively, within the next five years.
The company currently produces 100,000 barrels of oil and 1,000 million cubic feet of gas per day. Kun said Pertamina EP would finance 70 percent of the planned capital and operational expenditures from its operating revenues, with the rest being financed by borrowing.
There are at present eight local and overseas lenders interested in supporting the company?s future exploration and production projects, he said.
Pertamina EP plans to soon start jointly operating 15 oil fields in Aceh, Jambi, South Sumatra, Java and Papua with other contractors.
?We are now awaiting for approval from the Upstream Oil and Gas Regulatory Agency (BP Migas) for the terms and conditions of the project contracts,? Kun said.
Pertamina EP currently operates 200 oil fields throughout the country. Its proven reserves stand at 1,083 billion barrels of oil and 11.21 trillion cubic feet of gas. (godang)