Pertamina Expects Better, More Stable Oil Prices in 2017

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  • Pertamina building with logo (Logo Gedung Pertamina). TEMPO/Dhemas Reviyanto

    Pertamina building with logo (Logo Gedung Pertamina). TEMPO/Dhemas Reviyanto

    TEMPO.CO, Jakarta - State-owned oil and gas company Pertamina director for mainstream operation Syamsu Alam expects global oil prices to become more stable in 2017 after slumping to its lowest level in early 2016 at around US$30 per barrel. He said that his office will continue to speed up exploration and discover new oil fields to meet possible increase in oil and gas consumption.

    “I’m expect oil price to be better and more stable next year,” he told Bisnis Indonesia.

    According to him, the company will continue its production and exploration activities while maintaning efficiency. The company’s inorganic activities include increased participating interest (PI) in the cooperation contract holders (KKKS) which will be terminated, acquisition of oil fields at blocks with huge potential, both in Indonesia and abroad.

    Whereas organic activites include acceleration of exploration activity, development of existing oil fields and improved technology. Pertamina is projecting an average 8% percent increase in annual production despite slumping oil prices.

    “We will continue to conduct exploration and production,” he said.