Pertamina's board reviewing contracts
Pertamina's board reviewing contracts
The Jakarta Post, Jakarta
The new management of state oil and gas company Pertamina is
reviewing all contracts signed by the previous management in a
bid to filter out less profitable projects.
Pertamina president Ariffi Nawawi said on Tuesday that the
review, the first major task to be carried out by the new
management, was to get the firm focused on its main goal as a
business entity -- that is to seek profit.
"In the future, Pertamina will only prioritize the profit-
boosting projects. Pertamina will try to continuously increase
its profits, now that it has become a limited liability company,"
Ariffi said.
"So, we are now reviewing all those projects because it would
relate with the company's financing and scale of priorities. We
hope the review will be completed by year-end."
While the details remain sketchy, the review could well lead
to the cancellation of a number of projects being planned.
With increased profits, Pertamina will boost its competitive
edge against new players who are ready to challenge its
domination in the country's downstream sector, Ariffi said.
"We also plan to maintain our current strong infrastructure in
order to better compete with those new players," he said, while
expressing optimism that Pertamina under his leadership would be
able to do all that.
Ariffi, a career Pertamina official, took the company's top
post in September to replace Baihaki Hakim. He was previously a
director in the company.
Upon taking the post, Ariffi said he would focus first on
strengthening the organization, human resources and marketing
sectors of the company, while also giving more attention to the
lucrative petrochemical industry.
Ariffi also said that Pertamina expected to increase its crude
oil and gas output from the targeted 144,000 barrels per day next
year to 206,000 barrels per day in 2008.
Currently, the country's crude output is about 1.1 million
barrels per day.
Ariffi added that the company also aimed to boost exploration
so as to increase its reserves to 1.272 billion barrels in 2008
from a 1.104 billion barrel target in 2004.
Indonesia has total proven reserves of 5.12 billion barrels.
The company has said that it plans to invest US$5 billion
within the next five years, with 70 percent of the investment
going to the upstream business, which includes exploration.
The remaining 30 percent will go to the downstream business.
On the same occasion, Pertamina director for downstream Hari
Purnomo said the company was exploring the possibility of forging
a partnership with its Malaysian peer Petronas for the marketing
of fuel oil products.
"The volume to be involved in the partnership is yet to be
decided. But, while Pertamina will provide oil-based fuel,
Petronas is allowed to market in its own brand, by adding another
additive agent," Hari said as reported by Antara.
As such, he pointed out, Pertamina would only supply fuel to
gas stations owned by either local private companies or
Petronas.
The Jakarta Post, Jakarta
The new management of state oil and gas company Pertamina is
reviewing all contracts signed by the previous management in a
bid to filter out less profitable projects.
Pertamina president Ariffi Nawawi said on Tuesday that the
review, the first major task to be carried out by the new
management, was to get the firm focused on its main goal as a
business entity -- that is to seek profit.
"In the future, Pertamina will only prioritize the profit-
boosting projects. Pertamina will try to continuously increase
its profits, now that it has become a limited liability company,"
Ariffi said.
"So, we are now reviewing all those projects because it would
relate with the company's financing and scale of priorities. We
hope the review will be completed by year-end."
While the details remain sketchy, the review could well lead
to the cancellation of a number of projects being planned.
With increased profits, Pertamina will boost its competitive
edge against new players who are ready to challenge its
domination in the country's downstream sector, Ariffi said.
"We also plan to maintain our current strong infrastructure in
order to better compete with those new players," he said, while
expressing optimism that Pertamina under his leadership would be
able to do all that.
Ariffi, a career Pertamina official, took the company's top
post in September to replace Baihaki Hakim. He was previously a
director in the company.
Upon taking the post, Ariffi said he would focus first on
strengthening the organization, human resources and marketing
sectors of the company, while also giving more attention to the
lucrative petrochemical industry.
Ariffi also said that Pertamina expected to increase its crude
oil and gas output from the targeted 144,000 barrels per day next
year to 206,000 barrels per day in 2008.
Currently, the country's crude output is about 1.1 million
barrels per day.
Ariffi added that the company also aimed to boost exploration
so as to increase its reserves to 1.272 billion barrels in 2008
from a 1.104 billion barrel target in 2004.
Indonesia has total proven reserves of 5.12 billion barrels.
The company has said that it plans to invest US$5 billion
within the next five years, with 70 percent of the investment
going to the upstream business, which includes exploration.
The remaining 30 percent will go to the downstream business.
On the same occasion, Pertamina director for downstream Hari
Purnomo said the company was exploring the possibility of forging
a partnership with its Malaysian peer Petronas for the marketing
of fuel oil products.
"The volume to be involved in the partnership is yet to be
decided. But, while Pertamina will provide oil-based fuel,
Petronas is allowed to market in its own brand, by adding another
additive agent," Hari said as reported by Antara.
As such, he pointed out, Pertamina would only supply fuel to
gas stations owned by either local private companies or
Petronas.