INDONESIA'S PERTAMINA TO ACQUIRE 20% SHARE OF IRAQI OIL COMPANY
Last Updated: 2012-06-27
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JAKARTA, June 27 (NNN-ANTARA) -- Indonesia's state-owned gas and oil company PT Pertamina plans to take over one of Iraqi oil companies later this year, State Enterprises Minister Dahlan Iskan revealed, in a move that will enable the firm to directly get involved in oil exploration in that country.

"We may acquire 10 to 20 per cent share. With ten per cent stake, we are already able to secure 130,000 barrels," he said at his office here on Tuesday.

He said the step had to be taken after the Iraqi government expressed its unwillingness to hand over its oil field to Pertamina.

"We want oil from Iraq, but Iraq certainly will not just give it to us. We must go there," he said, without revealing the name of the company to be acquired.

Dahlan admitted that Pertamina had recently acquired an oil and gas company, Petrodelta S.A from Venezuela, to strengthen its downstream business abroad. Pertamina had bought 32 per cent share of Petrodelta.

Visiting Iraqi deputy prime minister for energy, Hussain Al-Shahristani, said the Iraqi government planned to invite Pertamina to exploit the existing oil and gas fields in his country.

"Right now, talks are on for Pertamina to participate in the bidding for oil and gas fields there (Iraq)," Al-Sharistani said.

He admitted that Pertamina had expressed its interest to manage an oil block that had already started production.

Iraq now has an oil reserve of 142 billion barrels and a gas reserve of 3.5 trillion cubic meters. Also it has nine extremely large oil fields with a reserve of five billion barrels and 23 big fields with a reserve of one billion barrels.

Meanwhile, Pertamina is reported to have processed at its refinery 69.1 million barrels of crude oil from domestic producers during the January-April period this year.

Pertamina processing director Chrisna Damayanto said here on Tuesday that the volume of domestic crude was 2.21 percent higher than the company`s initial target of 67.6 million barrels.

Pertamina refinery also processed 31.8 million barrels of imported crude oil, 10.42 percent lower than the 35.5 million barrels it had expected.

"For domestic crude, the figure was higher than expected, which is great, while the lower figures in imported crude is also good," Chrisna noted.

From January to April 2012, he said, the refinery produced 71.63 million barrels of gasoline, comprising 21.3 million barrels of premium (leaded) type fuel, 4.4 million barrels of kerosene, 39.88 million barrels of diesel fuel, and 6.05 million barrel of jet fuel.

"Fuel production has reached 70 per cent of the crude oil intake, with the highest production being of diesel fuel," Chrisna added.

Production of special fuels such as the Pertamax (RON 90 fuel) and Pertamax Plus (RON 92 fuel) increased by 102 percent and 94 percent, respectively, in January-April 2012.

"Overall, the processing performance during the January-April 2012 period was good," he said.

Chrisna stated that the company continued its optimum efforts by focusing on reducing domestic crude oil processing costs and implementing crude procurement best practices.

"Through this effort, we have brought the costs down to US$ 60.38 million, which is equivalent to US$ 31.2 million worth of business impact," he said.

Pertamina has six refineries with a total production capacity of 1.031 million barrels a day.

The company also plans to build two new refineries, which are expected to process 300,000 barrels a day by 2018.

The rate of fuel consumption grew at an average of 6-8 percent per year. Currently, national fuel consumption is close to 1.1 million barrels per day.

Oil production capacity is only 650,000 barrels a day, which means there is a 40 percent deficit, equivalent to 450,000 barrels a day.

"As a result, imported fuel is eroding the state`s foreign exchange by US$ 26.5 billion per year," Pri Agung said. -- NNN-ANTARA