PERTAMINA TO SPEND RP43.6 TRILLION TO INCREASE PRODUCTION

Jakarta, Sept 9 (ANTARA) - PT Pertamina plans to allocate around Rp43.6 trillion until 2010 to increase its oil and gas production, a company spokesman said.

"Out of the capital expenditure budget of Rp43.6 ytillion, Rp12.22 trillion will be used to drill 136 new wells," the company's upstream director Karen Agustiawan, said at a meeting with House Commission VII here on Monday.

According to plans, the funds will be allocated for PT Pertamina EP Cepu, Pertamina's Joint Operation (JOB) and Production Sharing Contract (PSP) projects and Joint Operations Board (BOB-BSP).

The funds to be allocated to the three parties in 2009 will reach Rp16.5 trillion, in 2010 Rp15.3 trillion and in 2011 Rp11.8 trillion.

"With it, it is expected Pertamina will be able to increase its gas and oil production," he said.

Pertamina EP's oil and gas production in 2009 is expected to reach 125,000 barrels a day up from the projected 122,000 barrels a day in 2008.

"The increase of production comes from 136 wells consisting of 46 wells to be drilled in 2009, 44 wells to be drilled in 2010 and 46 wells to be drilled in 2011," he said.

Regarding the plan Pertamina's president director Ari Soemarno said that the company had no problems with investment funds.

"No problem, but we also have to consider the availability of our internal funds whether they come from excess profit in hands or from net profit," he said.

Until June 2008, Pertamina booked a profit of Rp16.08 trillion, up from Rp8.02 trillion in 2007.