Indonesia: Pertamina Targets 37,1 Trillion Rupiah of Capital Expenditure in 2011

Annual General Meeting of Shareholders (AGMS) PT Pertamina approved the company’s capital expenditure this year to rise 76.4 percent to 37.1 trillion rupiah 76.4 percent from 19.9 trillion rupiah in 2010 prognosis. As much 76.4 percent or 28.4 trillion rupiah of the capital expenditure allocated for upstream sector while 23.6 percent allocated for downstream sector development. AGMS also targeted profit this year will be at 17.7 trillion rupiah, increase 14.2 percent from 15.5 trillion rupiah forecasted in 2010. Work Plan and Budget 2011 has been prepared through an aggressive strategy in upstream and profitable in downstream.

To achieve the targ et, Pertamina will continue to accelerate the transformation through increasing reserves and production growth of oil, gas and geothermal in the upstream sector, increasing value added in the processing and more expansive to expand leading product market in the downstream sector.

Oil and gas production in 2011 expected to increase 26.81 percent to be at 470,310 barrel oil equivalent a day from 443,500 barrel oil equivalent a day forecasted in 2010.

Geothermal production from Pertamina also targeted increase by 800,000 ton to 16.5 million ton, equivalent 2,188 Giga Watt Hour from 15.7 million ton, equivalent 2,089 Giga Watt Hour in 2010. Investment for upstream development included 76 exploration drilling wells and 221 development drilling wells. For geothermal, Pertamina would likle to develop Hululais field, Sungaipenuh, Lumut Balai, Ulubelu, Karaha, Kamojang, Lahendong 5-6 and Kotamobagu with a total installed capacity of 1,092 Megawatts.

Target oil fuel production in 2011 was also set at 247.3 million barrels, an increase of 11.8 million barrels compared to oil fuel production in 2010 amounted 235.5 million barrels, and non-fuel production tergeted increase to 23.9 million barrels in the year 2011, an increase from 1.7 million barrels compared to 2010 production with amount of 22.2 million barrels. The sales volume of non-subsidized fuel is also expected to increase from the previous year, non-subsidized fuel retail petroleum products are targeted to increase by 330,000 kilo liters to 1.56 million kilo liters in 2011 from 1.23 million kilo liters in 2010 prognosis.

Pertamina Lubricants sales will also be more expansive with sales target to rise by 88,000 kiloliter to 546,000 kilo liters in 2011 compared to the prognosis of 2010 amounted 458,000 kilo liters. For the aviation business, aviation fuel sales are targeted to increase by 110,000 kilo liters to 3.3 million kilo liters compared to 3.19 million kilo liters in 2010. The parameters used to set 2011 targets are crude oil price at level of $80/barrel oil price and exchange rate of IDR 9,000/USD.

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Source: Pertamina, January 25, 2010;