Thanks to the trend towards increasing crude oil prices, state oil and gas company PT Pertamina — the most profitable state enterprise in the country — expects to increase profits by nearly 16 percent in 2010 from a year earlier.
Pertamina’s commissioner Umar Said told reporters Monday that the company expected profits to hit
Rp 17.7 trillion (about US$1.81 billion) in 2010 from this year’s estimated figure of Rp 15. 3 trillion.
“The increase is caused by the oil price assumption in the state budget which increases from $61 per barrel this year to $65 per barrel in 2010,” said Umar.
He was speaking on the sidelines of a workshop entitled “Indonesia Entering The New Era of Achieving 4,700 megawatts to be the Leading Geothermal Power Producer”, held by the Indonesian Geothermal Association (API) and the Mines and Energy Society (Bimasena).
Pertamina is the most profitable state enterprise, contributing half of the total dividend paid by state enterprises to the state budget. For the 2008 fiscal year, Pertamina allocated to pay the government Rp 13.59 trillion in dividends, up from Rp 11 trillion in 2007.
Umar said Pertamina normally paid a dividend representing as much as 50 percent of its profits.
But, he added that the company expected to be allowed to pay a lower dividend next year as it needed more money to increase investment in 2010.
Abadi Poernomo, president director of PT Pertamina Geothermal Energy (PGE), who also attended the workshop, said PGE was included as a Pertamina subsidiary in the higher investment budget for next year.
“Our capital expenditure will increase from $130 million this year to about $200 million in 2010,” he said.
Abadi added that the money would be used for drilling 27 geothermal wells.
Included in the wells are 4 wells in Kotamobagu in North Sulawesi; 4 wells in Sungai Penuh, Jambi; 4 wells in Hululais, Bengkulu; 6 wells in Lumut Balai, Muara Enim, South Sumatra; 2 wells in Karaha Bodas; 4 wells in Ulubelu, Lampung; and 3 wells in Lahendong.
According to Abadi, drilling activities in one geothermal well normally required investment of between $6 and 7 million.
Pertamina’s finance director Ferederick ST Siahaan said earlier that Pertamina as a whole planned to spend Rp 39 trillion on investment next year, up by about 77 percent on this year’s estimated spending.
As much as $2.5 billion of this spending would be secured from external sources, including from loans and bonds.
Last week Pertamina secured $700 million in loans from a consortium of eight banks.
The company expects to secure another $300 million in loans from two domestic banks this week.
