Indonesia’s Pertamina has received approval from the Algerian oil and gas regulator to develop oil and gas wells in the north African country, a company director said Oct. 22, amid efforts to prop up declining domestic oil output.
The state energy company expects to begin drilling development wells in Algeria in 2016 and estimates peak output of up to 30,000 barrels per day (bbl/d) by the end of next year or early 2017 from around 18,000 bbl/d at present, Pertamina upstream director Syamsu Alam told reporters.
“This is important because reserves can be brought to Indonesia,” Alam said.
Next year Pertamina estimates its capital expenditure to climb to between $5 billion and $6 billion, up from a forecast spend of $4 billion this year. As of the third quarter, Pertamina's capital expenditure had reached $2.5 billion.
Low oil prices and fuel prices set by government have eaten into the company's profits, which are estimated to reach between $1 billion and $1.2 billion this year, below an April target of $1.7 billion, Pertamina Finance Director Arief Budiman said.
“The fact is fuel prices average at around 90 percent of our production costs,” Budiman said.
Recommended Reading
The OGInterview: Petrie Partners a Big Deal Among Investment Banks
2024-02-01 - In this OGInterview, Hart Energy's Chris Mathews sat down with Petrie Partners—perhaps not the biggest or flashiest investment bank around, but after over two decades, the firm has been around the block more than most.
Kissler: OPEC+ Likely to Buoy Crude Prices—At Least Somewhat
2024-03-18 - By keeping its voluntary production cuts, OPEC+ is sending a clear signal that oil prices need to be sustainable for both producers and consumers.
Petrie Partners: A Small Wonder
2024-02-01 - Petrie Partners may not be the biggest or flashiest investment bank on the block, but after over two decades, its executives have been around the block more than most.
Buffett: ‘No Interest’ in Occidental Takeover, Praises 'Hallelujah!' Shale
2024-02-27 - Berkshire Hathaway’s Warren Buffett added that the U.S. electric power situation is “ominous.”
BP Restructures, Reduces Executive Team to 10
2024-04-18 - BP said the organizational changes will reduce duplication and reporting line complexity.