Pertamina Plans Oil Output Hike
Indonesian state oil monopoly Pertamina announced on December 7th that the country’s crude production could reach 1.4 million b/d by the middle of 2001.
Gatot Wiroyudo, director of exploration at Pertamina, said that: “Indonesia technically should be able to produce 1.4 million b/d, but security problems in some local areas have hampered this.
” Wiroyudo indicated that several foreign oil companies working in Indonesia, including Conoco Inc. and Unocal Corp., intended to boost their output.
The company is optimistic, despite production levels that have lagged to 1.26 million b/d in October and November, well below Indonesia’s official OPEC quota of 1.36 million b/d. Pertamina also said that it plans to increase its own oil production by around 20 percent.
Wiroyudo said that: “I know this is an ambitious target, but we have to do it.” The government plans to revoke the state firm’s monopoly over the upstream and downstream sectors, although a draft bill must be passed by parliament for this to occur.
Pertamina currently conducts all exploration and production in the country alone or in conjunction with foreign companies, but will have to prepare itself for increased competition if its monopoly status is dissolved.
The state company will start a five-year plan in January aimed at reducing its workforce by 30-40 percent.
The job cuts are part of an effort to streamline and restructure the company ahead of a possible privatization in several years.