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o strengthen the country’s energy security through a more reliable distribution system, state oil and gas firm PT Pertamina has announced that it will acquire 26 new vessels by 2015 with a total investment of US$370 million.

Of the 26 new vessels, 12 of are scheduled to be delivered this year, two in 2013 and one in 2014. Pertamina is currently processing the investment approval for the remaining 11 and the vessels are expected to begin operation in 2015.

“Adding 47 vessels is part of our long-term investment plan for the period from 2009-2015. As many as 21 vessels have been received, while 26 more will come through 2015,” the company’s vice president for corporate communication, Mochamad Harun, said at his office in Jakarta on Friday.

He revealed that eight of the 26 vessels would be produced in the country.

The vessels will be used to distribute the firm’s oil-based fuels, liquefied petroleum gas (LPG) and other products across the country, he explained. As a result of Indonesia’s geography, 81.6 percent of Pertamina’s distribution must be over sea, he added.

“To improve our competitiveness, we have implemented several principles that are low cost, have excellent services, are accurate, reliable and are continuously improving particularly to support our integrated supply chain, marketing and businesses,” Harun said.

Currently, Pertamina operates 173 tankers comprising 153 oil tankers and 20 gas tankers. Of the 173 tankers, only 41 of them are owned by the company, while the remaining 131 are chartered vessels.

Four of the 41 vessels are owned by Pertamina, four of them are very large gas carriers (VLGC) which are usually used to store LPG.

The company has set a target for 40 percent of the vessels that it operates to be owned by Pertamina by 2016.

Currently, the existing vessels only serve Pertamina’s internal needs. From 2012 to 2014, the company will enlarge its shipping business to serve the national market and international market from 2014 to 2016.

The firm is currently preparing a subsidiary to handle its shipping businesses. After the establishment of the subsidiary, the existing division will then manage the distribution of subsidized fuels only, while the subsidiary will seek money from other businesses.

“As a manifestation of our commitment to obey all regulations in the country, all vessels we operate are Indonesian-flagged,” Harun reported.

In 2011, Pertamina’s shipping division distributed 82 million kiloliters (Kl), up by 4.3 percent from 2010. The products distributed comprised 31 million Kl of white oil (Pertamina’s oil-based fuels), 3.9 million Kl of black oil, 2.7 million Kl of aviation fuel, 28.8 million Kl of crude oil, 4.6 million Kl of asphalt, 10 million Kl of LPG and 500,000 Kl of lubricants and special boiling point x (SPBX).

In 2012, the company aims to increase the distribution to 84.2 million Kl comprising 33 million Kl of white oil, 3.1 million Kl of black oil, 3 million Kl of aviation fuel, 29.6 million Kl crude oil, 4.7 million Kl asphalt, 10 million Kl LPG and 500,000 Kl of lubricants and SPBX.