Pertamina to almost double exploration investment<\/p>\n
JAKARTA (JP): State-owned oil and gas company Pertamina said
\non Thursday that it planned to almost double its exploration and
\nproduction investment from an annual Rp 1 trillion (some US$105
\nmillion) to about Rp 1.8 trillion starting next year.<\/p>\n
Pertamina's director for exploration and production Gatot K.
\nWiroyudo said that the higher investment spending would be used
\nto boost oil and gas production by optimizing the output of
\nexisting oil fields and finding new ones.<\/p>\n
He said that under the plan, Pertamina hoped to double its oil
\nand gas output from the present 210,000 barrels of oil equivalent
\nper day to 425,000 barrels of oil equivalent by the year 2005.<\/p>\n
\"This is an ambitious plan; if we can just meet 70 percent of
\nour target then that is already an achievement,\" Gatot told
\nreporters at a press briefing.<\/p>\n
Throughout the five years, he said, Pertamina would spend in
\ntotal some Rp 9 trillion for the expansion of its production.<\/p>\n
He said that at present, Pertamina's total oil reserves
\namounted to 1.4 billion barrel of oil, while gas reserves totaled
\n2.6 trillion cubic feet.<\/p>\n
Gatot explained that by optimizing existing oil blocks,
\nPertamina could raise its production rate by about 10 to 30
\npercent.<\/p>\n
To find new oil reserves, he said, Pertamina had signed a
\nmemorandum of understanding with Malaysia's Petronas and Petro
\nVietnam to jointly find and develop new oil blocks.<\/p>\n
\"The chance of finding new oil blocks together is better than
\ndoing it alone,\" he said.<\/p>\n
Under the MoU, the three countries could participate in the
\ndeveloping of new oil blocks in their respective countries and
\nabroad.<\/p>\n
\"We have committed ourselves to spending between $100,000 and
\n$200,000 for holding joint surveys next year,\" Gatot added.<\/p>\n
Pertamina, he said, had to measure itself up by the standards
\nof world class oil and gas companies.<\/p>\n
Such companies, he said, had production levels of a minimum of
\n200,000 barrels of oil per day (bpd).<\/p>\n
They also owned oil and gas reserves that could last for about
\n25 years of production.<\/p>\n
Gatot added that such companies could make independent
\ninvestment decisions and were considered as bankable companies.<\/p>\n
Pertamina's production plans come amid concerns that
\nIndonesia's fast depleting oil reserves will soon turn the
\ncountry into a net oil importer.<\/p>\n
Despite strong oil prices, the country is unable to meet its
\noil quota of 1.38 million bpd as set by the Organization of
\nPetroleum Exporting Countries (OPEC).<\/p>\n
Gatot said that Pertamina's current crude oil production stood
\nat 1.26 million bpd.<\/p>\n
He blamed security problems for preventing Indonesia from
\nmeeting its oil quota.<\/p>\n
He said that locals in several regions were preventing
\nPertamina from conducting seismic activities for unclear reasons,
\nwhile existing operations faced security problems.<\/p>\n
PT Caltex Pacific Indonesia had earlier reported that repeated
\ndisputes with its workers and locals had caused oil production to
\ndrop this year by an average of 30,000 barrels per day.<\/p>\n
\"Technically, we could have achieved an oil output of 1.4
\nmillion barrels. But because of security disturbances we failed
\nto do so,\" Gatot went on.<\/p>\n
According to him, the company could raise its production level
\nto 1.4 million bpd in the first six months of next year, provided
\nthat conditions were favorable for maintaining normal operations.<\/p>\n
Separately, Pertamina's refining director Ariffi Nawawi said
\nthat the state company was interested in buying the Tuban
\npetrochemical center.<\/p>\n
He was referring to the $2.3 billion integrated petrochemical
\nplant in Tuban, East Java.<\/p>\n
The center is operated by PT Trans Pacific Petrochemical
\nIndotama (TPPI), which the Indonesian Bank Restructuring Agency
\n(IBRA) is offering for sale.<\/p>\n
Developing a petrochemical arm, Ariffi continued, would enable
\nPertamina to make use of its naptha products, which it had been
\nexporting so far.<\/p>\n
Pertamina also had plans to utilize the oil residue of its
\nDumai refinery in Riau to produce high octane mogas.<\/p>\n
Ariffi said that oil residue alone was worth only $15 per
\nbarrel, but if processed to mogas it could be worth $25 per
\nbarrel.<\/p>\n
Pertamina, he added, had no plans to build more oil refineries
\nbut expected other investors to continue building them. (bkm)<\/p>",
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