Pertamina sets aside Rp15 trillion for M & A in 2012

State oil and gas company PT Pertamina said it will expand its operation in the upstream sector next year through merger and acquisition (M & A) of oil and gas blocks. To realize the plan, the company sets aside Rp 15 trillion (US$1.65 billion).

?I think we would spend above Rp15 trillion for merger and acquisition of oil and gas blocks in 2012,? Director for Upstream of PT Pertamina, M. Husein told Petromindo.com.

The $1.6 billion expenditure for M&A activities is part of the total capital expenditure set by Pertamina for next year of $9 billion, more than double from 2011 capex of $4 billion.

Husein declined to elaborate the targeted blocks that the company is interested to acquire.

Nevertheless, the company has stated in a number of occasions that it plans to acquire working interest in a number of blocks, such as Mahakam block in East Kalimantan.

The company is also eyeing oil and gas fields in Iraq which are being offered by the Iraqi transition government following the collapse of Khadafi regime. (godang)