Pertamina looks to expand overseas in 2020

[JAKARTA] Indonesia state oil and gas company PT Pertamina plans to boost investments in its overseas upstream projects next year, its senior official said on Thursday, as the government pushes the company to strengthen its presence abroad.

While the company is yet to set a budget for its foreign expansion, Dharmawan Samsu, upstream director at Pertamina, said it may include funds to increase its interest in Iraq's oil block, expand capacity in Algeria and develop African fields it acquired through a stake in France's Maurel et Prom.

Separately, minister for state-owned enterprise Rini Soemarno, who also oversees Pertamina operations, said the government expects the company to "optimise" operations at its overseas blocks and secure new blocks in places such as Africa.

In its 2020 budget proposals, the government said 1 trillion rupiah (S$97.5 million) will be allocated for "the strengthening of the current account balance" and to buy stakes in offshore oil companies.

"It is the government's plan and it is positive for us," Mr Samsu said, adding Pertamina will discuss the plan with the government.

Of the total target oil output of 414,000 barrels per day (bpd) for 2019, Pertamina aims to produce 112,000 bpd from its overseas portfolio.

REUTERS