Energy Firm Pertamina Set to Spend $6.7b in 2013

From The Jakarta Globe

State-owned energy firm Pertamina is planning to set aside $6.7 billion for capital expenditure next year to finance various business ventures, including the acquisition of overseas mining companies, a top executive said.

Andri Hidayat, the company’s financial director, said in Jakarta on Monday that next year’s capex will be used to finance Pertamina’s acquisition plans as well as its regular working program.

“[The expenditure] projection remains the same, like drilling [activities] or production improvement,” Andri said during a public hearing at the parliament building on Monday. He added that some of the 2013 capital costs will be sourced from outside the company.

He refused to disclose further details.

Pertamina previously announced that it expects to spend between $6 billion and $7 billion every year as it makes ambitious plans to increase its presence and become a world-class energy company by 2024.

Afdal Bahaudin, Pertamina’s director of investment planning and risk management, said that it was still too early to determine next year’s capital expenditure.

He added that Pertamina’s management will meet its shareholders this month to determine next year’s spending plans. “We expect to have approval on the amount before year-end,” Afdal said.

The company also signed a memorandum of understanding with Chandra Asri to build a polypropylene plant with an output capacity of 250,000 metric tons per year, Chrisna Damayanto, the refinery director at Pertamina, said in Jakarta.

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