Pertamina to set us$6.7 billion in capex for 2013

Pertamina to set us$6.7 billion in capex for 2013

(ANTARA/Fanny Octavianus)

"This week, we are going to announce all projects that we`re working on."
Jakarta (ANTARA News) - State-owned oil and gas company PT Pertamina is allocating Rp64 trillion (about US$6.7 billion) for its capital expenditure in 2013, its Finance Director Andri T Hidayat said.

Hidayat said the capital expenditure (capex) for 2013 increased by about 10 percent if compared with this year`s capex which stood at US$5.8 billion.

"Capital expenditure next year will likely focus on such activities as drilling operations and product maintenance," he said.

"Other investment spending would likely be used to finance the firm`s acquisition of potential oil and gas fields at home and overses," he added.

According to Hidayat, the amount of budget allocation for acquisition in 2013 is not different from that in 2012 which reaches Rp12 trillion (about US$1.25 billion).

Meanwhile, Upstream Director of PT Pertamina, M. Husen said the firm will continue to increase production through optimization of production.

"This week, we are going to announce all projects that we`re working on," he stated adding that the firm targets its production on five percent increase from the production level in 2012.

According to Husen, national oil production in 2012 is estimated at 200,000 barrels per day, slightly lower than the target of 205,000 barrels per day.

"This year, our oil production only increased by one percent compared to last year`s," he noted.

Besides, he added, gas production in 2012 is estimated at 1.6 billion cubic feet per day, or 102 percent of the target.

Husen also admitted that Pertamina`s production largely came from its subsidiaries, PT Pertamina EP and PT Pertamina Hulu Energi.

Previously, Pertamina had planned to set a level of US$6 billion - US$7 billion capital expenditure per year from 2012 to 2014, with some of the budget coming from loan facilities.

Earlier this year, Pertamina planned to post a total net profit of Rp 23.5 trillion ($2.6 billion), a 32 percent jump from the 2011 target.
(U.Y012/KR-BSR/A014)

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