16 February 2017, Lagos – Indonesian state-owned oil and gas company Pertamina plans to invest $3.7bn this year in its upstream business a 42 per cent rise from last year’s $2.6bn, the Upstream Director, Syamsu Alam, said Wednesday.
This is in line with the company’s target of increasing its oil and gas output this year to 334,000 barrels per day, Alam said, according to Platts.
One factor behind the rise in spending is the acquisition of and investment in the Mahakam block in East Kalimantan. The company plans to spend $180 million in the block, a year ahead of when Pertamina is allowed to take over Mahakam in 2018, Alam said.
Mahakam is operated by Total. The block’s license is due to expire in end of 2017 and Pertamina will take over in 2018