Indonesia’s state-owned energy company Pertamina announced that it is preparing an oil tanker to take on the first output from the company’s recently acquired assets in Algeria.
Hanung Budya, Pertamina’s director for business and marketing, said MT Gunung Geulis would be sent to Algeria to take on a cargo of 600,000 barrels of crude oil produced from MLN, EMK and Ourhud fields in the African nation.
Hanung said that it would take the ship up to 30 days to reach its destination before returning to deliver its cargo to Pertamina’s refinery in Balikpapan, East Kalimatan.
“This delivery signifies our commitment to the country’s energy security,” said Hanung.
Pertamina paid ConocoPhillips $1.75 billion for a 65 percent interest of the MLN field, 16.9 percent of EMK and 3.7 percent of Ourhoud. Pertamina’s take is estimated to be around 23,000 barrels per day.
Hanung said that the company would boost output at its Algerian assets to reach 32,000 bpd by 2017.
Pertamina is planning to send ships to Algeria to transport the crude back to Indonesia once every two months, according to Hanung, and the company planned to expand its fleet in order to accommodate more deliveries from overseas assets as it steadily expands its international presence.
Hanung added that Pertamina had also recently acquired a 10 percent interest in West-Qurna, a major oil field in Iraq in which its output currently stands at 500,000 bpd.
“We need to improve our fleet in order to transport our shares from overseas assets so we can meet growing domestic demand,” said Hanung.
Pertamina currently operates 201 vessels of various sizes, but the energy giant is preparing to expand its fleet in a program that will run until 2016.
Pertamina plans to purchase four vessels valued at a total of $204 million, with more ships to come in 2016 including a $1.75 billion liquefied natural gas tanker.
The state-owned firm is targeting net income of $3.21 billion in 2014, a 5.7 percent increase from last year.
The target is down from the original projection of $3.44 billion, after the government rejected a request to raise the price of non-subsidized liquefied petroleum gas by 68 percent.
Pertamina scaled down the increase to just 17 percent, which became effective on Tuesday. The company had incurred losses of Rp 7.73 trillion ($642 million) in 2011-12 from the sales of 12-kilogram and 50-kilogram LPG cylinders, according to the Supreme Audit Agency.
Pertamina estimated that for 2014 that its daily production would be 284,000 barrels of oil and 1,567 million metric standard cubic feet of gas.
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