Pertamina Will Invest IDR 52.8 Trillion in 2012

Vice President Corporate Communications of PT Pertamina (Persero), Mochamad Harun, said that Pertamina plans to invest IDR 52.8 trillion in 2012. Most of the investment funds would be used for upstream projects.

Pertamina

"For 2012, Pertamina plans to invest IDR 52.8 trillion, with the composition of 80 percent for upstream projects and 20 percent for downstream projects," said Aaron, in the Pertamina Office, Jakarta, Monday (19/12/2011). According to him, the projects that will be funded are part of the MP3EI project (Masterplan Economic Development Acceleration and Expansion of Indonesia or Masterplan Percepatan dan Perluasan Pembangunan Ekonomi Indonesia).

Regarding the funding sources, Pertamina would take a small fraction of 20 percent from the internal funding. The remaining 80 percent will be from external. "The External Funding will be from bonds, project financing and loan," added Aaron.

Related to the projects, Aaron said construction of the Regasification of Floating Storage Units in West Java is one of the major projects for next year. The project is targeted to operate in April 2012 with 3 million metric tons capacity per year or equivalent to 400 million cubic feet of natural gas per day.

Another project is building the refineries Residual Fluid Catalytic Cracking Cilacap. This will add the Cilacap capacity up to 411 thousand barrels per day. "Pertamina and ExxonMobil have also been carrying out the joint development of Cepu Blok facility. It is expected to start the operations in 2014 with a production capacity of 165 thousand barrels per day," said Aaron.

Source: Kompas