• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 10 days Does Toyota Know Something That We Don’t?
  • 4 days America should go after China but it should be done in a wise way.
  • 10 days World could get rid of Putin and Russia but nobody is bold enough
  • 10 hours "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 12 days China is using Chinese Names of Cities on their Border with Russia.
  • 11 hours The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 2 days Even Shell Agrees with Climate Change!
  • 3 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 4 days How Far Have We Really Gotten With Alternative Energy
  • 12 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
£2.99 Long Haul Electric Bus Pilot Launched in UK

£2.99 Long Haul Electric Bus Pilot Launched in UK

FlixBus has launched a three-month…

Pertamina Needs $100B To Increase Indonesia’s Oil Production

Indonesia’s state-owned energy company Pertamina needs US$100 billion to boost oil production and meet the country’s oil demand, with 70 percent of this spending expected to come from external funds and partners, Pertamina’s vice president of corporate business strategic planning, Ernie D Ginting, said on Tuesday.

While Pertamina is looking to buy oil assets overseas—in Iraq and central Asia in particular—Indonesia’s own oil production that has been declining for decades, is declining faster than the company has been anticipating, Ginting said on the sidelines of the Asia Pacific Petroleum Conference (APPEC) in Singapore.

“Our fields are mature, there is no new, huge findings, so we are competing with natural decline,” the official said, noting that as domestic production drops, Indonesia’s oil demand continues to grow.

According to industry data, carried by Reuters, Indonesia is currently producing less than 800,000 bpd of oil, nearly halved from the peak of 1.5 million bpd in the mid-1990s.

Pertamina is looking to boost production, but it needs expertise and partnerships, because even if it acquires new blocks, it cannot develop them alone, Ginting said.

In a bid to cut its current account deficit, currently at 3 percent of GDP, Indonesia introduced earlier this month new legislation to prioritize local crude oil production over imported crude oil. The new regulation stipulates that oil and gas operators in Indonesia must first sell their production to Pertamina in Indonesia before considering exports of crude oil. 

Indonesia has been looking to cut crude oil imports and bolster domestic production, as oil prices have increased while the country’s finances have deteriorated.

Indonesia recorded a substantial decline in crude oil imports in June this year, down 48.8 percent from its May imports, as Pertamina focused its efforts on growing domestic production amid a falling local currency that made imports costlier, official statistical data quoted by S&P Global Platts showed.

ADVERTISEMENT

Earlier this month, Indonesia’s currency, the rupiah, reached its lowest level to the U.S. dollar in 20 years amid the emerging markets currency rout.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News