Wednesday November 18, 10:45 AM
UPDATE 1-Pertamina plans global bond, to boost output
By Khettiya Jittapong and Ploy Ten Kate
BANGKOK, Nov 18 (Reuters) - Indonesia's state oil and gas firm, PT Pertamina, said on Wednesday it was considering issuing $1 billion in bonds on the international market as part of its plan to fund $4.2 billion capital expenditure next year.
It planned to boost its capacity to 1 million barrels of oil equivalent per day by 2017 as part of its drive to be a world class company, Chief Financial Officer Ferederick Siahaan told reporters. 'We want to grow through unorganic growth and the most likely way to do this is through acquiring businesses that fit our strategy,' he said on the sidelines of an ASEAN Council on Petroleum conference in Bangkok.
The company was looking to make about 5-10 acquisitions, including taking licences in oil and gas businesses, Siahaan said.
The company planned to spend 39 billion rupiah ($4.2 million) on capital expenditure in 2010, when it planned to boost production capacity by 50,000 barrels per day from 425,000 bpd now, Siahaan said.
Indonesia urgently needs to build new refineries to meet growing domestic demand and reduce imports.
The company also planned to issue at least 1 trillion rupiah in bonds on the domestic market, possibly in the second quarter of 2010, but the exact time and amount would depend on the market, Siahaan said.
The bond issues were part of its plan to borrow $2.5 billion to help fund the capital expenditure, he said.
Pertamina plans a big increase in capital expenditure next year, with 75 percent for upstream activities as it needs to increase oil production following a steady slide in Indonesia's overall oil output.
It is also looking at several potential gas fields, Siahaan said.
The remaining 25 percent would go to mid-to-downstream activities, Siahaan said.
It had said it planned to spend 22 trillion rupiah on capex in 2009 with 65 percent allocated to upstream activities and the rest downstream.
Pertamina planned to raise its stake in the Cepu oil field in East Java to 50 percent from 45 percent, but Siahaan did not say when it might negotiate this with its partners.
Exxon Mobil (NYSE: XOM - news) has 45 percent and regional governments hold the remaining 10 percent in Cepu, which is set to become one of Indonesia's biggest oil projects, with reserves of around 600 million barrels.
Indonesia, which has far more gas than oil, has pushed companies to move faster in developing gas projects as the country badly needs the fuel for domestic industries and exports.
Pertamina has no plan to go public but expected to list some of its subsidiaries in the next few years, Siahaan said.
($1=9390 Rupiah)
(Editing by Alan Raybould)
|
|
|
Send Article by Email
Send Article by IM
Blog This with Y! 360
Printable View
