Tuesday, 11 May 2021 | 20:48 WIB

Exploring 12 Wells, Pertamina EP Prepares US$755 Million Capital Expenditures in 2018

Oil Refinery

JAKARTA, NNC - Pertamina EP, a subsidiary of PT Pertamina prepares a capital expenditure (capex) of US$755 million (approximately IDR10 trillion). That number is an increase of US$111 million compared to the realization of capex in 2017, which amounted to US$644 million.

Pertamina EP’s President Director, Nanang Abdul Manaf explained that the capex would be used to explore 12 wells, a new plan of development (PoD), and 75 wells for development.

Nanang added that the projection is lower than last year's achievement in which Pertamina EP booked revenues of US$2.77 billion and net income of US$615 million.

The high profit of last year, he explained, was supported by the company's year-end production and world oil price which also jumped in the range of USD60-70 per barrel.

"We expect oil prices to remain high, but it seems that the increase would not be due to fundamental factors," he said in his office, Jakarta, Wednesday (1/31/2018).

He added that this year's revenue and profit targets are also linked to lower gas production projections and higher selling prices.

Apart from that, Nanang affirmed that Pertamina EP will remain aggressive in an effort to increase the reserves and production of new oil and gas. Until January 1, 2018, the total oil and gas reserves of the company reached 1,940.15 million barrels of oil equivalent.

Meanwhile, Pertamina EP's reserve replacement ratio (RRR) reached 114 percent.