Indonesia: Pertamina to go ahead with higher oil production plan despite oil price crash

  • Indonesia’s top oil and gas company, state-owned Pertamina, will press on with a plan to increase production by 1.8% in 2020 despite financial pressures from falling global crude oil prices.
  • Pertamina’s upstream director Dharmawan Samsu said in a statement on 6 Apr 20 that the company “will strive to maintain oil and gas production levels as per our Work, Program and Budget [RKAP]”, which pegs output at 923,000 barrels of oil equivalent per day (mboepd).
  • The state-owned company’s production rate reached 919 mboepd during the 1Q20, which is 1.4% higher than 2019 but 0.4% lower than the RKAP target.
  • Production growth was largely driven by the company’s foreign operation, particularly in Algeria, which is managed by subsidiary Pertamina International EP (PIEP). The subsidiary contributed almost a third of 1Q20 growth.
  • Pertamina is also investing USD1bn, nearly a quarter of the company’s total 2020 upstream capital expenditure, in developing Indonesia’s fourth-most productive oil block, the Mahakam Block in East Kalimantan.

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