PT Pertamina, Indonesia’s state oil company, plans to spend US$100 million this year to increase output at the country’s biggest untapped oil field that it owns jointly with Exxon Mobil Corp.
The partners plan to boost production from Cepu field on Java island to 20,000 barrels a day from 200 barrels a day in December, Ferederick Siahaan, finance director at Pertamina, said in Jakarta late yesterday.
The government wants Pertamina, the biggest contributor of dividend among state companies, to increase crude production amid declining oil prices. Cepu is estimated to have 600 million barrels of oil reserves and may produce 165,000 barrels a day at its peak.
“We’re evaluating whether to use internal cash or seek a loan,” Siahaan said, without elaborating.
Exxon and Pertamina each have a 45% stake in a venture to develop the field, while local governments hold the remaining 10%.