State oil and gas firm PT Pertamina is earmarking capital expenditure (capex) of Rp15 trillion this year, with about 87% going to the upstream oil and gas business, finance director Frederick Siahaan said.
To finance the capex, Pertamina has secured a $500 million five-year loan from 23 lenders, with Credit Suisse acting as the lead manager, Siahaan was quoted as saying by XFN-Asia. The remaining funds will be obtained from other sources, he said, without elaborating.
Siahaan said this year's spending will focus on the development of two major blocks -- Cepu in East Java and Pondok Tengah in West Java.
Meanwhile, Pertamina is laying down measures to help tackle shortages in its fuel storage facilities this year.
Pertamina fuel division chief, Djaelani Sutomo, said recently that this year, the company expects not to find shortages in any of its stores -- unlike last year, when its 119 offshore stores were hit by a total of 377 shortages, meaning that 1.03 depots suffered shortages each day.
He said that the company would conduct several efforts to overcome the problem, including the procurement of a floating storage tanker in Kalimantan, which has been left seriously exposed by last year's fuel shortages.
"We have one big tanker that has not been optimized, so we will place it near the areas frequently recorded to have depots suffering fuel shortage," Sutomo was quoted as saying by The Jakarta Post.
Data from Pertamina show that in 2006, of the company's 119 depots, those in three areas suffered the most frequent fuel shortages -- Kota Baru, South Kalimantan (25 times); Pangkalan Bun, West Kalimantan (30 times); and Sintang, Kalimantan Baru (40 times).
Pertamina blames the shortage problem mainly on the dry season and silted-up rivers that hamper the distribution of fuel through water routes, he said, adding the company is in the process of negotiating with local companies in Kalimantan to establish smaller depots in several places in surrounding areas, and is trying to find alternative routes using land transportation.
"We also have a new system in place called Regular Area Emergency," Sutomo said. The system will redirect water distribution routes to land ones should problems occur in the regular distribution lines.