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ndonesia’s state energy firm PT Pertamina has assigned US$6.77 billion in investment next year to finance upstream and downstream projects and increase production, as well as strengthening the nation’s energy infrastructure.

The investment value was included in Pertamina’s 2013 budget and work plan following the general shareholders meeting in Jakarta on Thursday.

“Our investment strategy next year will be focused on major projects that will smooth the progress of Pertamina to becoming a world-class energy company,” the firm’s president director Karen Agustiawan said.

The firm is also seeking Rp 29 trillion (US$3 billion) in net income next year, higher than this year’s target of Rp 23.5 trillion.

Pertamina’s upstream business will receive the largest allocation of $3.1 billion or around 46 percent of the total investment value. The allocation includes planned acquisitions of overseas oil and gas blocks such as those in Venezuela and Algeria.

Among Pertamina’s domestic upstream projects next year is the plan to carry on enhanced oil recovery (EOR) projects in proven oil and gas fields to increase average daily crude output by 110,000 barrels per day (bpd) in 2013.

All in all, Pertamina expects to push its crude oil output up to 244,000 bpd in 2013 from upstream subsidiaries such as PT Pertamina EP and Pertamina Hulu Energi (PHE).

This year, Pertamina expects to reach 203,000 bpd of average oil production, 5 percent higher than the output in 2011.

Pertamina EP is expected to add around 133,000 bpd to its mother company’s output, 6.4 percent up from the 125,000 bpd in 2011.

PHE, the upstream oil and gas subsidiary which manages domestic and overseas fields under various schemes, should o contribute 60,000 bpd or higher by 1.6 percent from the output in 2011.

Pertamina’s share from the Cepu block, in which the company cooperates with US-based ExxonMobil, is estimated to be around 9,700 bpd this year, up around 1 percent from 2011.

Pertamina also aims to reach 1.691 million standard cubic feet per day (mmscfd) of gas output in 2013 or higher than this year’s targeted production of 1.568 mmscfd.

The company is also going to spend $638 million and $546 million in financing refinery projects and marketing and trade business respectively. In addition, $437 million will back up its gas projects, while the remaining businesses will receive $2 billion.

On the downstream side, sales of 680,000 kiloliters of lubricant products, 10 percent up on this year’s 617,000 kiloliters, is anticipated.

Export destinations for the lubricants will expand to 24 countries in 2012.

In the first nine months of this year, Pertamina made $1.99 billion net income, 9 percent less than the same period last year. However, revenue increased by 5.6 percent to $52.59 billion.

Pertamina’s assets rose to $43.45 billion, 26 percent up, in the January-September period.

The state owned company recently announced an expected additional crude oil production of 35,000 bpd next year, should it acquire US oil and gas company ConocoPhillips’ assets in Algeria.

Karen Agustiawan said the company had signed an agreement with ConocoPhillips to purchase the New York-listed firm’s Algerian unit, North ConocoPhillips Algeria Ltd. “The acquisition will allow Pertamina to take over the stake of ConocoPhillips in Block 405A, Algeria, which comprises three main oil fields: Menzel Lejmat North, Ourhoud and EMK.”

North ConocoPhillips Algeria currently operates the Menzel field, and has a 65 percent participating interes. The company also owns a 3.7 percent and 16.9 percent stake in the Ourhoud and EMK fields, respectively.