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Indonesia’s state-held energy company Pertamina plans to invest US$54 billion in upstream production by 2025, with the purpose to raise its oil, gas and geothermal output by 185 percent, spokeswoman Wianda Pusponegoro told local media on Tuesday.
Pertamina’s goal is to increase oil, gas and geothermal production to around 1.91 million barrels of oil equivalent per day (boepd), compared to just 670,000 boepd for November of 2016.
“Hence, we want to be more aggressive in strengthening the upstream industry by trying to exploit more domestic and overseas oil and gas blocks,” Pusponegoro told The Jakarta Post.
The blocks the company is vying for include the Attaka and East Kalimantan blocks, operated by Chevron Indonesia until March 2017, and the South East Sumatra block operated by China National Offshore Oil Corporation-Southeast Sumatra Ltd. (CNOOC SES) up until September 2018.
Apart from upstream development, Indonesia’s energy company is also seeking to more than double its refined oil production capacity to 2.3 million barrels of oil per day by 2025 from 1 million bpd for 2015.
In October last year, Pertamina said that it aimed to increase its oil production by 42 percent to 438,000 bpd in 2017, up from a target of 308,000 bpd in 2016, with most of the increase expected to come from acquisitions in Russia, Iran, and Iraq.
Related: China Leads Unprecedented Drop In Asian Crude Production
A little over a month later, Indonesia suspended its membership in OPEC at the talks about the supply-cut deal. Pertamina described the country’s decision to temporarily suspend its OPEC membership as “rational”, because otherwise Indonesia would have to cut 5 percent of its oil production, or around 37,000 bpd, which would have a “significant impact” on the oil and gas industry and national energy security.
Pertamina’s domestic crude oil production averaged 223,000 bpd between January and September 2016, up by 12 percent on the year.
Last week, the company said in a statement that it had planned more than US$100 billion worth of investment in various business lines by 2025, including in energy infrastructure construction.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.