Indonesia's state-owned oil and gas firm PT Pertamina aspires its net-profit to rise by 12.79 percent to 3.44 billion U.S. dollar next year as the revenue from downstream and upstream business spheres pick up, a statement from the company said here on Thursday.
Upstream business sphere was expected to contribute more than 50 percent of the total business profits, it would be resulted from the hike of production from existing fields and new fields obtained from merger or acquisition activities.
PT Pertamina expected to produce about 284,000 barrel oil per day and 1,567 MMscfd gas or equivalent with 554,700 barrel oil per day next year.
Besides, the hike of geothermal production to 3,036 GWh also factored on the rise of production at the upstream sector.
On downstream, the increase of profit was due to the hike of sales of non-subsidized fuel and the business in aviation industry.
In addition to the hike in sales, the aggressive marketing in petrochemical business and lubricant business also contributed.
On gas business, PT Pertamina expected to enjoy benefit from the profound growth of the sector by 364 percent along with acceleration of the government's drive of shifting reliance of fossil fuel to abundant gas.
To bolster the target, the firm plans to set aside 7.85 billion U.S. dollar capital expenditure next year, 48 percent of which allocated to upstream business and 22.2 percent for business development, 13.4 percent for gas business, 6.4 percent for processing business, 6.1 percent for mark, and 3.9 percent for petrochemical business and its subsidiary firms.
The company estimated that its income would grow 6 percent to 79 billion U.S. dollar income next year with 6.67 billion U.S. dollar profit.
The Southeast Asia's largest economy has tried to lure back judged investors to stimulate bearish investment in oil sector as aging oil fields have pumped less crude oil.
At the same time, the country aims to reduce reliance on fossil fuel and to take more benefit of its vast array of gas resources -- the so called "oil to gas conversion program" is expected to elevate efficiency and diminish air pollution.
Indonesia's proven oil reserve stands at 4 billion barrel, but the country's proven gas reserve is at 104.71 Tcf, according to data from energy and mineral resources ministry.
For this year, Indonesia estimate oil outputs of 840,000 barrel per day and aims to ramp up the production to 870,000 barrel per day next year.
