Pertamina to boost net profits this year

State-owned oil and gas company PT Pertamina is projecting a 39 percent increase in profits this year, the company?s official said on Friday.

Pertamina?s Vice President Iin Arifin Takhyan told reporters in Jakarta that company expects to raise its net profit to Rp 34 trillion (1US$ = Rp 9,250) from Rp 24.5 trillion last year, reflecting rising oil prices.

?Pertamina also made cost-cutting measures in the procurement of fuel and crude oil to boost its net profit,? Arifin said.

Last year, the company was able to book Rp 24.5 trillion in profit, up 29 percent from 18.99 trillion in 2006. Rp 11 trillion, or about 45 percent of the 2007 profit will be paid to the government as a dividend.

?The increase in last year?s net profit reflected that the Indonesia Crude Price went up to $72 per barrel in 2007 from $60 in 2006,? financial director Frederick Siahaan said.

The company aims to boost crude oil output by 14 percent to 159,000 barrels a day, with upstream unit PT Pertamina EP and its partners expected to contribute 125,000 barrels and 34,000 barrels, respectively, he said.

?Currently, Pertamina only produces 151,000 barrels a day, which is below target,? Pertamina director of upstream operations Karen Agustiawan said.

Out of the 151,000 barrels, 116,000 barrels are from Pertamina EP and 34,000 from its partners, he said. Pertamina EP has also scheduled exploratory drilling of 22 wells during 2008.

Pertamina would raise crude oil output from wells in Lapangan Tambun (Bekasi), Pondok Makmur (West Java), Rimau (South Sumatra), Poleng (East Java) and West Madura, (*)