Pertamina to spend $2.08b for 2004 operations next year<\/p>\n
Evi Mariani, The Jakarta Post, Jakarta<\/p>\n
State-owned oil and gas company Pertamina plans to spend about
\nUS$2.08 billion for its operations in 2004, allocating $1.4
\nbillion for upstream and $680 million for downstream activities.<\/p>\n
\"For the downstream operations, Pertamina will maintain and
\nrevamp its refineries, improve its distribution network, buy
\ntankers, build oil fuel depots, establish liquefied petroleum gas
\n(LPG) terminals and upgrade oil fuel terminals,\" said company
\npresident Baihaki Hakim.<\/p>\n
For the upstream operations, the budget would be used for the
\ndevelopment of its production wells, especially those in southern
\nSumatra and western Java. It would also be used for the
\ndevelopment of geothermal fields and participation in joint
\nventure blocks, he said on Tuesday in a hearing with the House of
\nRepresentatives Commission VIII for the mining, oil and gas
\nindustry.<\/p>\n
The company sees that its crude oil production capacity is
\nlikely to increase from 34,463,750 barrels in 2002 to 36,950,000
\nbarrels in 2004.<\/p>\n
However, even though the company sees a bright outlook in the
\ncrude oil production capacity, the nationwide capacity is most
\nlikely to continue decreasing because the country has not
\ndiscovered new productive oil fields in the last four years.<\/p>\n
\"The last time Indonesia found a productive oil field was
\nabout four years ago,\" he said. \"It seems we have run out of new
\noil fields.\"<\/p>\n
According to a report from the Ministry of Energy and Mineral
\nResources, Indonesia's production of oil (comprising crude oil
\nand condensate) steadily declined from 1.6 million barrels per
\nday (bpd) in 1995 to 1.34 million bpd in 2001.<\/p>\n
\"Even to produce 1.2 million bpd at present, the country has
\nto make real efforts,\" Baihaki said.<\/p>\n
According to him, Pertamina contributes less than 10 percent
\nto the national crude oil production. The remainder is
\ncontributed by production-sharing contractors including Caltex,
\nUnocal and Exxon-Mobil.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-to-spend-208b-for-2004-operations-next-year-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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