Pertamina reviewing contracts, aims to boost profit<\/p>\n
The Jakarta Post
\nJakarta<\/p>\n
The new management of state oil and gas company Pertamina is
\nreviewing all contracts signed by the previous management in a
\nbid to filter out less profitable projects.<\/p>\n
Pertamina president Ariffi Nawawi said on Tuesday that the
\nreview, the first major task to be carried out by the new
\nmanagement, was to get the firm focused on its main goal as a
\nbusiness entity -- that is to seek profit.<\/p>\n
"In the future, Pertamina will only prioritize the profit-
\nboosting projects. Pertamina will try to continuously increase
\nits profits, now that it has become a limited liability company,"
\nAriffi said.<\/p>\n
"So, we are now reviewing all those projects because it would
\nrelate with the company's financing and scale of priorities. We
\nhope the review will be completed by year-end."<\/p>\n
While the details remain sketchy, the review could well lead
\nto the cancellation of a number of projects being planned.<\/p>\n
With increased profits, Pertamina will boost its competitive
\nedge against new players who are ready to challenge its
\ndomination in the country's downstream sector, Ariffi said.<\/p>\n
"We also plan to maintain our current strong infrastructure in
\norder to better compete with those new players," he said, while
\nexpressing optimism that Pertamina under his leadership would be
\nable to do all that.<\/p>\n
Ariffi, a career Pertamina official, took the company's top
\npost in September to replace Baihaki Hakim. He was previously a
\ndirector in the company.<\/p>\n
Upon taking the post, Ariffi said he would focus first on
\nstrengthening the organization, human resources and marketing
\nsectors of the company, while also giving more attention to the
\nlucrative petrochemical industry.<\/p>\n
Ariffi also said that Pertamina expected to increase its crude
\noil and gas output from the targeted 144,000 barrels per day next
\nyear to 206,000 barrels per day in 2008.<\/p>\n
Currently, the country's crude output is about 1.1 million
\nbarrels per day.<\/p>\n
Ariffi added that the company also aimed to boost exploration
\nso as to increase its reserves to 1.272 billion barrels in 2008
\nfrom a 1.104 billion barrel target in 2004.<\/p>\n
Indonesia has total proven reserves of 5.12 billion barrels.<\/p>\n
The company has said that it plans to invest US$5 billion
\nwithin the next five years, with 70 percent of the investment
\ngoing to the upstream business, which includes exploration.<\/p>\n
The remaining 30 percent will go to the downstream business.<\/p>\n
On the same occasion, Pertamina director for downstream Hari
\nPurnomo said the company was exploring the possibility of forging
\na partnership with its Malaysian peer Petronas for the marketing
\nof fuel oil products.<\/p>\n
"The volume to be involved in the partnership is yet to be
\ndecided. But, while Pertamina will provide oil-based fuel,
\nPetronas is allowed to market in its own brand, by adding another
\nadditive agent," Hari said as reported by Antara.<\/p>\n
As such, he pointed out, Pertamina would only supply fuel to
\ngas stations owned by either local private companies or
\nPetronas.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-reviewing-contracts-aims-to-boost-profit-1447899208",
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