The Jakarta Post , Jakarta | Sat, 10/31/2009 1:24 PM | Business
Oil and gas producer PT Pertamina, the country’s most profitable state company, is setting its sight on raising oil production by up to 8 percent next year to meet the ever-increasing demand.
President director Karen Agustiawan said Friday the company had so far this year managed to produce an average 181,000 barrels of oil per day (bpd), higher than the targeted average of 171,250 bpd, and expected the rising trend in production to continue in 2010.
"The company can increase oil production by 7 to 8 percent next year," she said on the sidelines of a gathering to promote the roles of state companies in the country.
"We will boost production at several exploration areas."
Among others, Karen went on, the company was putting a lot of hope in several of its operating blocks, including in Limau in South Sumatra and the Cepu block in Java.
"We will be trying to boost production in the Cepu block to 20,000 bpd per day," Karen said.
The Cepu block, which currently pumps out 6,000 bpd, is located on the border between Central Java and East Java.
The block was supposed to begin contributing the 20,000 bpd since December last year, but the plan has yet to bear fruit.
The block is said to hold proven reserves of 600 million barrels of oil and 1.7 trillion cubic feet of gas. Pertamina has a 45 percent participating interest in the block.
Pertamina relies heavily on its two upstream subsidiaries, Pertamina EP and Pertamina Hulu Energi, which manage and develop the company’s oil and gas upstream portfolios through various partnership schemes.
Nearly 80 percent of Pertamina’s total oil output comes from Pertamina EP. Of Pertamina’s production target of 171,250 bpd this year, Pertamina EP is estimated to contribute 132,250 bpd and Pertamina Hulu 39,000 bpd.
In addition to efforts to boost production, Pertamina also plans to sell stakes in three subsidiaries, namely PT Pertamina Drilling Services, PT Pertagas and PT Pertahulu Energi, through separate initial public offering (IPOs).
Pertamina is easily the country’s most profitable state company, contributing about half of the total dividend collected from all state companies annually.
For the 2008 fiscal year, Pertamina’s dividend was set at Rp 13.59 trillion, up from Rp 11 trillion in 2007.
Pertamina booked a consolidated net profit of Rp 30.2 trillion in the 2008 fiscal year, up by 54.8 percent from Rp 19.51 trillion in 2007.
Due to lower oil prices and the fallout from the global economic crisis, Pertamina estimates this year’s net profits will plunge to Rp 12 trillion. (naf)