Jakarta, CNBC Indonesia – PT Pertamina (Persero) targets Pertamina's contribution to national crude oil production to experience a significant increase in 2029. This is supported by a fairly large company budget allocation for the upstream oil and gas (oil and gas) sector.
Pertamina's Vice President for Corporate Communication, Fadjar Djoko Santoso, explained that over the next five years, Pertamina will prepare significant capital expenditure (capex) to boost production increases.
He said that more than 60% of the company's investment budget would be allocated for the development of the upstream oil and gas sector.
“From this investment, it is hoped that Pertamina's contribution to national crude oil production will continue to grow from the current 69%, it is hoped that it can reach 77% in 2029,” said Fadjar to CNBC Indonesia, Wednesday (22/5/2024).
According to him, this increase was sought through optimizing production and exploration of all oil and gas fields managed by Pertamina. For example, from the Minas, Senoro, Rantau fields, as well as the Algerian MLN field.
“Apart from that, merger & acquisition (M&A) activity from potential blocks both domestically and from overseas,” he said.
Previously, PT Pertamina President Director Nicke Widyawati targeted Indonesia to achieve crude oil self-sufficiency by 2029. This is supported by the company's fairly large budget allocation to support various upstream oil and gas activities.
According to Nicke, for the next five years, Pertamina will allocate an investment budget in the upstream sector of up to 60% of the total investment.
“Our target in 2029 is self-sufficiency in crude oil. Currently, a third of our supply of crude oil consumption comes from imports,” said Nicke in a discussion at the 48th IPA Convention & Exhibition (IPA Convex 2024), quoted Wednesday (15/5/2024 ).
Nicke is optimistic that with a fairly large budget allocation for the upstream sector, in the next five years crude oil production in Indonesia can double the current production.
Not to forget, his party will also increase refinery capacity as an effort to reduce imports of fuel oil (BBM). Apart from that, Pertamina will also boost the gas jar program to help the government reduce LPG imports, which currently reach 85%.
“Therefore, in our strategy, we also allocate 17% to develop an integrated upstream, midstream and downstream gas business. We believe that gas is a connecting fuel for switching from fossil energy to new and renewable energy,” said Nicke.
[Gambas:Video CNBC]
Next Article
Pertamina Wins Best Investor Relations Energy Company Award
(wia)