Pertamina on course to acquire five foreign assets

The acquisition of the foreign oil and gas blocks by Pertamina has reached 70 percent and it needs to be pushed further to meet the deadline.
Bogor, W Java (ANTARA News) - PT Pertamina is in the process of acquiring five foreign assets of oil and gas blocks in order to reach 2.2 million boepd (barrel oil equivalent per day) oil production target by 2025.

"We are (Pertamina) in the process of acquiring four to five foreign assets," Pertaminas Vice Senior President Upstream Business Development Denie S. Tampubolon remarked during a media workshop in Bogor, West Java, Friday.

"The point is that we are trying to reach a target of 2.2 million boepd, and we are not picky to define where the source should come from, therefore we also have to look abroad, besides exploring the domestic fields," he explained.

According to Denie, the acquisition of the foreign oil and gas blocks by Pertamina has reached 70 percent and it needs to be pushed further to meet the deadline.

With the acquisition of the five foreign assets, the oil production is estimated to increase to about 18 thousand to 20 thousand boepd per year.

Pertamina has begun expanding its overseas oil and gas explorations since 2002 through a government-to-government cooperation contract on 10 and 11.1 Blocks in Vietnam.

Since its first expansion, Pertamina has added SK-305 Block in Malaysia in June 2003 and 3-Western Desert Block in Iraq, 13-Read Sea Block in Sudan, 123-3 Sirte Onshore Block in Libya, 17-3 Sabratah Offshore Block in Libya, and 3 Offshore Block in Qatar.

"In its latest acquisition in November-December 2012, Pertamina acquired foreign assets in Algeria and Iraq," reported Denie.

Denie remarked that Pertamina received 23 thousand boepd from its Algerian acquisition and aims to increase it to 25 thousand boepd in 2014.

In Iraq, Pertamina has 10 percent participation rights and its field production will be increased from 400 thousand boepd in 2014 to 1.6 million boepd by 2020.

According to Denie, Pertamina will prioritize its plans to acquire the assets that can increase oil production in a short period of time, which are already being operated or are currently being developed and also have significant oil reserves.

To meet the target of 2.2 million boepd by 2025, Pertamina expects a contribution of 600 thousand boepd from overseas assets, which will be reached through a comprehensive corporate action by thoroughly considering its technical and commercial aspects as well as its risk mitigation.

"I will find out what kind of assets we need to acquire this year and next year, since the 600 thousand boepd had been logged in as our target, and in the same time, we want to expand cooperation opportunities with International Oil Companies (IOC) and National Oil Companies (NOC)," Denie explained.(*)