TEMPO.CO, Jakarta - PT Perusahaan Gas Negara (Persero) Tbk of PGN, the state-owned oil and gas company, has prepared US$1 billion (Rp9.72 trillion) to acquire oil and gas fields this year.

PGN's president director Hendi Prio Santoso said this was in line with the company's target to expand into the upstream sector this year.

"We are eyeing three oil and gas fields," he said on Wednesday, April 17, without mentioning the fields' names.

This year, PGN is also allotting between $250 million and $500 million for gas pipeline expansion. Hendi said the company expects to install gas pipelines in Central Java.

Hendi added that PGN currently has $1.5 billion in cash reserves. Without giving many details, he said the company is also planning to issue bonds.

Nusky Suyono, PGN's investor relations staff, said the company is aiming to increase its sales volume by five to 10 percent this year. In 2012, PGN sold 807 million metric standard cubic feet per day (MMSCFD) with a distribution volume of 877 MMSCFD.

On Wednesday, the company also announced it would pay out a dividend of Rp202.77 per share. As the largest shareholder, the Indonesian government will receive a dividend total of Rp2.8 trillion.

RIZKI PUSPITA SARI | ABDUL MALIK