Pertamina sees output soaring in two years<\/p>\n
The Jakarta Post , Jakarta<\/p>\n
State oil and gas company PT Pertamina said on Tuesday its oil
\noutput could increase by up to 36 percent over the next two years
\nthanks to increased exploration and exploitation.<\/p>\n
During a hearing with the House of Representative's Commission
\nVIII, Pertamina's president Arrifi Nawawi told legislators the
\nfirm expected crude output to increase to 140,570 barrels oil per
\nday (bpd) next year and 161,530 bpd in 2005 compared to this
\nyear's target of 118,800 bpd.<\/p>\n
Last year, the firm produced 100,250 bpd of oil.<\/p>\n
Despite the increased output, Pertamina's finance director
\nAlfred Rohimone told reporters the company expected a drop in its
\npre-tax profit from Rp 14 trillion (US$1.6 billion) to Rp 12
\ntrillion this year due to a decline in various types of revenue.<\/p>\n
He said that up to September this year, the company had only
\nmanaged to make Rp 8 trillion in pre-tax profits.<\/p>\n
With less than two months to go before the end of year, Alfred
\npredicted Pertamina would only manage to boost this figure by Rp
\n4 trillion at most.<\/p>\n
"All components on the revenue side are dropping, while
\nexpenditure is increasing," Alfred said.<\/p>\n
Alfred did not give any details on what was causing the
\ndecline in revenue. He only said that the stronger rupiah against
\nthe U.S. dollar had contributed to the drop in profit even though
\noil prices have been increasing.<\/p>\n
The company had said earlier that it would put 70 percent of
\nits investment in exploration and production activities. The
\ncompany plans to spend US$5 billion on investment up until 2008.<\/p>\n
Alfred added that the company might issue rupiah denominated
\nbonds on the local market next year after dropping an earlier
\nplan to issue global bonds this year.<\/p>\n
"There is still a lot of cash in the domestic market that
\ncould be utilized by us," Alfred said as quoted by Dow Jones
\nNewswires.<\/p>\n
He added that a dollar bond was "riskier than a rupiah (bond)
\nalthough a dollar bond pays a lower coupon."<\/p>\n
That was the reason why the new management, which took the
\nhelm in October, scrapped the former management's plan to issue
\ndollar bonds.<\/p>\n
Alfred failed to specify the volume of bonds that would be
\nissued if the plan went ahead.<\/p>\n
The company is also seeking loans from local banks such as
\nBank Mandiri, Bank Negara Indonesia (BNI) and Bank Central Asia
\n(BCA) to help finance capital expenditure of $600 million next
\nyear.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-sees-output-soaring-in-two-years-1447893297",
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"sponsor": "Okusi Associates",
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