Pertamina needs $18.7 billion for investment

State oil and gas company PT Pertamina said on Monday it needed a total of US$18.7 billion to reform and expand its business until 2010.

Company president director Ari H. Sumarno said during the hearing with the House of Representatives? Commission VII that the firm needed $10.5 billion for investment in downstream sector from 2006 through 2010, including for the construction of new refineries and the modification of the existing refineries.

Another $6.3 billion is needed for investment in upstream sector, $1 billion for investment in marketing and commerce, and $900 million for investment in shipping business.

The investment in upstream sector aims to double oil and gas output to between 260,000 and 300,000 barrels of oil equivalent per day, from 130,000 barrels of oil equivalent per day at present.

Ari said Pertamina expected to raise the investments funds through partners, stock market and other sources.

Pertamina has been told President Susilo Bambang Yudhoyono to reform itself so that it could become a very profitable company that the nation could be proud of.

Ari said to carry out the reforms, the state company needed assistance from world-class consultants, who have experienced in third world countries such as Thailand and Brazil. (Godang)