SINGAPORE May 16 Indonesia's state energy firm
PT Pertamina is planning to buy mostly overseas oil
and gas assets to help raise its output nearly five-fold to 2.2
million barrels per day (bpd) by 2025.
Southeast Asia's largest economy was once self-sufficient in
oil and gas production and is a former member of the
Organization of the Petroleum Exporting Countries (OPEC). But it
has been struggling for years to attract enough investment to
halt declining domestic output, which has dropped to about half
of its 1995 peak of 1.6 million bpd.
Pertamina said in statements issued on Thursday, a public
holiday in Indonesia, that it plans to acquire mainly oil and
gas blocks that are producing or at the development stage, as
well as assets that have significant oil reserves.
"Oil and gas imports largely contributed to Indonesia's
current account deficit last year. There's probably a greater
drive towards achieving energy self-sufficiency," said Gundy
Cahyadi, a Singapore-based economist at DBS Bank.
Pertamina said 70 percent of its oil and gas acquisitions
would be of overseas assets, which were expected to provide
600,000 bpd of the total output target.
Pertamina did not specify countries where it is planning to
look for assets, how much it planned to spend or how it would
raise the money.
"Non-organic growth through acquisitions of assets overseas
will give an important contribution to the growth in Pertamina's
production ... and add to the supply of crude oil to fulfil
Indonesia's needs," Denie S. Tampubolon, Pertamina's senior vice
president of upstream business development, said in a statement.
Pertamina's current oil and gas output is 465,220 barrels of
oil equivalent per day.
(Reporting by Eveline Danubrata; Additional reporting by Fergus
Jensen in Jakarta; Editing by Tom Hogue)