Pertamina to spend Rp 34.7 trillion for upstream operation

State oil and gas firm PT Pertamina will allocate Rp 39 trillion (US$=Rp 9,500) in capital expenditure next year, and about Rp 34.7 trillion of the total funds will be used to boost the company?s upstream operations.

Pertamina?s Acting Director for Upstream Operations Bagus Setiardja said in Jakarta on Tuesday that the capital expenditure to be allocated for the upstream operations would also include the spending of the company?s subsidiaries Pertamina Hulu Energy, Pertamina E&P, and Pertamina Geothermal Energy.

?Pertamina Hulu Energy will for example receive about Rp 3.9 trillion,? said Bagus, who is the firm's president director. He added that the funds would be used only for operating costs and cash flow.

Meanwhile, Pertamina E&P earlier said that its total working capital would reach Rp 8.6 trillion next year, most of which would be used to drill 110 new wells, consisting of 20 exploration wells and 80 development wells. (*)