The Jakarta Post
In a bid to reach the full-year production target of 922,000 barrels of oil equivalent per day (boepd), state-owned energy giant Pertamina recently increased its upstream budget by 10 percent from US$2.6 billion to $2.9 billion.
“Honestly, it isn’t an easy target to reach. The management supports us by increasing our budget to $2.9 billion,” Pertamina upstream director Dharmawan Samsu said on Thursday, adding that investment was needed to achieve the target.
Dharmawan said the increased budget allocation was approved by management after it considered the achievements in the first half of 2019.
Pertamina plans to construct 98 new upstream projects for a total investment of $1.9 billion, which would be taken from the $2.9 billion budget.
Most of the projects are to be handled by Pertamina’s upstream subsidiaries -- PT Pertamina EP (47 projects), Pertamina Hulu Energi (29 projects), Pertamina Hulu Indonesia (19 projects), Pertamina EP Cepu (two projects) and Pertamina EP Cepu ADK (one project).
“Of those 98 projects, [Pertamina] is exploring other potential in new areas, such as around the Mahakam Block,” Dharmawan said.
Dharmawan explained that not all of the additional allocation of $300 million would be disbursed for those new projects, but would also be allocated to finance activities in existing assets.
“[The additional budget] is also to fund the exploration activities and our production facility that needs to be repaired,” he said.
The $2.9 billion upstream budget is 7.4 percent higher than last year's budget, which was $2.7 billion. Meanwhile, the production target of 922,000 boepd is slightly higher than last year's realization of 921,000 boepd. (bbn)