Pertamina eyes big upstream investments

JAKARTA, January 17, 2017 – Indonesia’s state oil firm Pertamina announced on Tuesday that it has earmarked some USD 54 billion for investments in the upstream sector until 2025.

The company is hoping to raise production of oil, gas and geothermal energy in Indonesia by some 185% to 1.91 million boepd over that period.

“We want to be more aggressive in strengthening the upstream industry by trying to exploit more domestic and overseas oil and gas blocks,” spokesperson Wianda Pusponegoro, told The Jakarta Post.

The news comes amidst an aggressive Pertamina expansion drive across all sectors, including by building two new refineries and upgrading its four existing units with the aim of gradually increasing its refining capacity from around 1.04 million bpd at present to 1.68 million bpd.

On Monday, the company announced that it had settled the land-use agreement for the Tuban oil refinery project in East Java, which it is executing in a joint venture with Russia’s Rosneft.

Read our latest insights on: