Fulfilling National Energy Needs, Pertamina Budgets Jumbo Capital Expenditure Of Rp. 155 Trillion

Pertamina Building. (Irfan Meidianto/VOI)

JAKARTA - PT Pertamina (Persero) set a capital expenditure (CapEx) budget to meet the national energy needs of Rp. 10.7 billion or around Rp. 155 trillion in 2021. That number is double the prognosis of the realization of capital expenditures last year amounting to 4.7 billion U.S. dollars.

"The budget shows Pertamina's optimism to continue to grow in the midst of the COVID-19 pandemic by continuing the business development that has been running and creating new initiative programs," said Senior Vice President corporate communications and investor relations of PT. Pertamina Agus Suprijanto, as quoted from Antara, Tuesday, April 13.

Agus explained that from the total CapEx budget this year as much as 46 percent will be allocated to upstream oil and gas activities in an effort to ensure increased production and oil and gas reserves in order to reduce national crude oil imports.

Furthermore, another 36 percent will be used to continue the development of refineries and petrochemicals.

The remaining 18 percent will be absorbed for the company's business activities, including continuing the development of new and renewable energy.

"With the CapEx, it is certain that the operational work plan in 2021 can run well," Agus said.

A number of operational work plans of the company throughout this year, among others to achieve the target of oil and gas production from the company's field both domestically and abroad. In addition, the addition of oil and gas reserves is targeted to reach 696 MMBOE, or almost four times the target of adding reserves last year.

Pertamina has also completed a 2D seismic marine survey of more than 31 thousand kilometers which is the longest seismic survey in Asia and Australia in the last 10 years, in order to find potential oil and gas reserves.

"We will continue our aggressive seismic survey activities to obtain additional potential new oil and gas reserves, thereby increasing the ratio of oil and gas reserves to production," Agus said.

Pertamina continues to boost processing activities, especially the production of fuel oil (BBM) that is more qualified and more environmentally friendly in order to fulfill national energy.

The blue sky refinery that has been operating for more than a year was able to increase the production of pertamax type of fuel, thus lowering imports worth 700 million U.S. dollars per year.

The Company will also consistently continue the construction of refineries through RDMP and GRR projects, as well as parallel completing the construction of green refineries and petrochemical industries in several refineries.

As for gas distribution is targeted to reach 392 thousand BBTU and gas transmission of 502 BSCF through the construction of gas pipelines, including gas network infrastructure as many as 500 thousand household connections.

In the clean energy development program, Pertamina targets electricity production of 4.5 GWh through the development of Geothermal Power Plants, Solar Power Plants, and Biogas Power Plants.

The Company also continues its role in the battery ecosystem for electric vehicles as well as the development of ether dimethyl.