Pertamina to explore for oil in Malaysia

State oil and gas firm Pertamina will explore for oil in Malaysia and Vietnam through strategic alliances with Malaysia's and Vietnam's state oil firms Petronas and PetroVietnam.

Pertamina's exploration and production director Gatot Karyoso Wiroyudo, said the memorandum of understanding for the strategic alliances was signed on Nov. 25, 2000.

"With these strategic alliances, we (Pertamina, Petronas, and PetroVietnam) will have the opportunity to conduct exploration in three countries. This cooperation does not rule out the possibility for Pertamina to explore for oil in those countries," he said in a press briefing to explain Pertamina's 2010 vision and mission in Jakarta on Thursday (Dec. 7).

In the press briefing, Gatot Karyoso was accompanied by the chairman of Pertamina's Foreign Contractors Management Agency (BPPKA), Herutjokro, and BPPKA spokesman Abubakar Siddick Nitikusuma.

Gatot Karyoso said that the three state oil and gas companies would also conduct joint investment in the oil and gas sector.

"In the first stage (of up to mid-2001), we will conduct joint study that would cost us around US$600,000, with each of us bearing $200,000," he said.

After the joint study is completed, according to Gatot Karyoso, they will start join oil exploration in potential oil fields.

"In each of the oil field that we will explore, each of us has committed to spending up to US$25 million," Gatot Karyoso said.

Besides Petronas and Petro Vietnam, Pertamina is also sounding out possible strategic alliance cooperation with other state oil firms from other countries.

"We have also formed an alliance with Oil and Gas Corp. of India

[O&GC]," he said, adding that with the alliance, Pertamina could conduct oil exploration in India.

Pertamina's restructuring

Gatot also explained about Pertamina's restructuring program. After fundamental restructuring commences next year, Pertamina's directorate of exploration and production would become an autonomous business unit.

With that change, the exploration and production business unit would increase its investment budget, which in 2001, investment would be increased by 80 percent to 100 percent to around Rp 1.8 trillion to Rp 2 trillion.

With increased investment in the exploration and production sector, oil output from Pertamina's own operations - those managed by Pertamina without involving contractors -- should also increase. (godang)