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Pertamina allocates US$2.5b for upstream investment in 2019

The Jakarta Post | November 8, 2018
 The Islamic Chamber of Commerce , Industry and Agriculture (ICCIA)

State energy holding company Pertamina will allocate at least US$2.5 billion to develop its upstream sector next year, a roughly 8 percent increase from this year’s investment target of $2.3 billion, a company official has said.

Pertamina SVP upstream strategic planning, portfolio and evaluation head Meidawati said recently that the investment target for 2019 was in line with the company's oil and gas production target for next year.

“Our upstream production target for 2019 is 414,000 bopd [barrels oil per day] and 2,944 mmscfd [million standard cubic feet per day]," she said during a seminar in Jakarta.

The 2019 oil production target is 14,000 bopd higher than this year’s target of 400,000 bopd, while the gas production target for 2019 is 2,944 mmscfd, 4.07 percent lower than this year’s target of 3,069 mmscfd.

Meidawati said the lowered gas production target was a result of a decline in the reservoir of the Musi structure in the Pendopo Field in South Sumatra, which is under the operation of Pertamina’s upstream subsidiary PT Pertamina EP (PEP).

“We've seen lower [gas] production in the Mahakam Block, but our oil production will increase in 2019, thanks to [production increase in the] Banyu Urip Field and also our other upstream subsidiaries,” she said.

As of September, the realization of 2018’s investment had reached around $1 billion of the $2.3 billion target, while oil and gas production had reached 384,000 bopd and 3,060 mmscfd, 96 percent and 99.7 percent, respectively, of the full year target. (bbn)