Pertamina Sets Aside Almost $4 Bn to Boost Oil, Gas Output

Indonesia’s state owned energy company Pertamina has set aside almost $4 billion in to boost oil and gas production, according to a company executive.

According to Jakarta Globe, the company plans to spend $3.75 billion to improve its oil and gas and geothermal production this year.

Allocation for this year is 24 percent higher than $3.02 billion it spent last year and would account for 48 percent of its total capital expenditure in 2014, Ali Mundakir, Pertamina’s vice president of corporate communications, said.

“The investment will be used to finance Pertamina’s more than 600 upstream projects this year in Indonesia as well as overseas,” Ali was quoted as saying by Jakarta Globe.

Pertamina aims to produce up to 280,200 barrels of oil per day and 1,568 million standard cubic feet of gas per day this year.

The company will be working on several upstream projects this year which include development of the Offshore North-West Java (ONJW) block’s wells, set to provide additional production of 5,300 barrels of oil per day and 27 million metric standard cubic feet per day, and concurrent development of six fields in the West Madura Offshore (WMO) block, reported the newspaper.

Pertamina EP, the upstream subsidiary of Pertamina, will drill three more wells in the Paku Gajah field which are expected to produce 45 million metric standard cubic feet of gas per day by next year.

The development of the field has since 2010 resulted in 24 million metric standard cubic feet of gas per day and 488 barrels of oil per day, said Jakarta Globe.

Sign-up for our free weekly newsletter update via email here