The subsidiary of the state owned energy company PT Pertamina recorded US$675 million or around Rp9.45 trillion in income in the first three months of the year.
"The income was 115 percent higher than US$586 million in the same period last year," President Director of PT Pertamina EP Nanang Abdul Manaf told reporters here on Thursday night.
Nanang said he was optimistic the income of the company would exceed the target of US$2.7 billion this year.
In addition to oil price hike now reaching around US$70 per barrel, efficiency also has contributed to the rise in the company`s income, he said.
The company has launched a program of efficiency such as by reducing production cost.
"Program of efficiency is aimed at supporting productivity," he said.
The production cost of Pertamina EP averages US$15.98 per barrel for oil and US$1.03 per MSCF for gas in March, 2018.
"In offshore fields such as Field Poleng, the production cost averages US$10.47 per barrel of oil and US$1.81 per MSCF of gas," he said.
The relatively low production cost for gas significantly benefited the company as gas production accounts for 60 percent of its income.
Until May 15, 2018, Pertamina EP produced 76,309 barrels of oil per day (BOPD) or 96 percent of the target of 79,275 BOPD. Its gas production reached 1,027 million standard cubic feet per day (MMSCFD) or 104 percent of its target.
In a bid to boost production this year, Pertamina EP has set aside US$330 million for capital spending and US$1.64 billion for operational spending.
"The funds will be used to finance explorations, development, production and general administration (G&A)," Nanang said.
Until mid May, 2018, Pertamina EP already spent US$122 million of the capital expenditure and US$359 million of the operational budget, he said.