Pertamina estimates ?profit from upstream sector at $800m in 2015
Monday, February 1 2016 - 04:12 PM WIB
State owned oil and gas firm PT Pertamina estimated its profit from the downstream sector in 2015 at US$800 million, lower than the previous year, despite an increase in production.
Pertamina?s President Dwi Soetjipto said Pertamina?s upstream production last year is estimated at 607,000 barrels of oil equivalent per day (boepd), up 11 percent on the previous year.
The biggest contributor is PT Pertamina EP with estimated production of 100.555 bpd of oil against the target of 115,000 bpd; 1,015 mmscfd of gas, or 97 percent of the target of 1,052 mmscfd.
Dwi said with along with the drop in oil prices to between $48-$50 per barrel last year, the contribution of upstream business to Pertamina?s consolidated profit dropped significantly. In 2014, the sector accounted for 90 percent of the firm?s $1.3 billion.
?In 2015, the contribution of upstream and non-upstream businesses to Pertamina?s consolidated profit was 50-50 in terms of percentage. In terms of value, the upstream business contributed $800 million,? Dwi said.
Harry Poernomo, a member of the House of Representatives? Commission VII for among others energy affairs, said the time is now for Pertamina to go globally looking for oil and gas fields, leaving ?oil and gas fields in the country for the next generation to develop.
?We should not live on natural resources. Instead, we should live on competitiveness. As such, Pertamina should be supported by the government either politically or through incentives to purchase fields overseas,? he said.
Meanwhile, Wianda Pusponegor, Pertamina?s Vice President of Corporate Commmuncation, explained that Pertamina now has oil and gas assets in Algeria, Malaysia and Iraq.
In Iraq, the assets are TSC West Qurna field with a participating interest of 10 percent in a partnership with ExxonMobil, Petronas, Shell and South Oil Co. ?Oil production there now reaches 450,000 bpd and is projected to peak at 1.6 bpd in 2022,? she said.
In Malaysia, the firm has interest in six blocks in partnership with Shell and Murphy. The blocks are K and H blocks where the firm has 24 percent interest each; P block (18 percent); SK 309, SK311 and SK314AA (25.5 percent). The blocks consist of 11 producing fields, four development structures, 14 discovery structures and 16 exploration prospects.
?In Algeria?s fields, last year we received the permit from Alfnet (the country?s oil and gas regulator) to produce from MLN (Menzel Lejmat North) field through PT Pertamina Algeria 54,300 bopd, up from 39,000 bopd last year,? Wianda said.
Pertamina?s assets in Algeria consists of three fields, namely MLN with a participating interest 65 percent, EMK (.6.9 percent) and Orhud (3.73 percent). Pertamina serves as operator at MLN.? Partners in the fields are Sonatrach, Talisman/Repsol. Anadarko, Cepsa, Maersk and ENI.
Editing by Johannes Simbolon