He said, the projects were divided into four categories, namely the construction of terminal fuel and pipeline, construction of terminal liquefied petroleum gas (LPG), improvement and development of facilities, mooring and building depot charging aircraft along with other support facilities.
JAKARTA (TheInsiderStories) – PT Pertamina, a state-owned energy producer planned to build 29 strategic projects with total costs Rp20 trillion (US$2.02 billion), said one official on Monday (30/07). Recently, the company announced lowered its projected capital spending by 20 percent due to worsening market condition.
According to Pertamina’s spokeman Adiatma Sardjito, the oil & gas producer has allocated more than Rp36 trillion, in which Rp20 trillion focused on strategic projects, especially in eastern Indonesia.
Of 29 strategic projects, as many as 10 projects worth Rp4.9 trillion is intended for the construction of the fuel terminal and pipeline in order to support a more efficient supply patterns. A total of four projects namely Maumere’s Fuel Terminal Development, Bau-Bau’s Fuel Terminal, Biak’s Fuel Terminal and fuel storage tanks in 14 other locations in eastern Indonesia.
He said, Pertamina also has plan to construct 12 LPG terminals worth Rp 10 trillion to support the program Kerosene to LPG Conversion in all regions of Indonesia. Furthermore, Sardjito explained, the company to build four pressurized LPG terminal project in Bima, Kupang, Wayame and Jayapura.
Meanwhile, to improve operating reliability as well as inter-island connectivity in line with the development of a new airport, the energy producer is conducting the construction of three Aircraft Charging Depot along with other supporting facilities amounting to Rp3.4 trillion. At that same time, to improve the reliability of supply by sea, Pertamina is currently executing four projects to improve and develop of port mooring facilities with costs Rp1.6 trillion.
Such projects, further Sardjito, entered the construction phase, while the rest are at the preparation stage. The financing projects carried out by Pertamina and its subsidiaries. As for the contractors, Pertamina synergy with state-owned company such as PT Wijaya Karya Tbk (IDX: WIKA), PT Barata Indonesia, PT Hutama Karya and PT Rekayasa Industri.
Previously, Pertamina‘s Director for Investment Planning and Risk Management Pertamina Gigih Prakoso on July 17 stated, that the company’s capital spending plan is lowered to $4.5 billion from initial $5.6 billion to anticipate the macroeconomic development especially oil price spike, the rupiah depreciation against U.S dollar and due to the projects delay.
He ensures the company will not cut the upstream investment and refinery development, especially in the terminated blocks given to Pertamina. The firm allocates $3 billion for the upstream investment, one of them is the first phase of the Refinery Development Master Plan in Balikpapan, East Kalimantan.
But, he said, the company will cut investment in the downstream business due to some projects cancellation such as the construction of fuel tanks in Eastern Indonesia.
The investment cut seems related to a rumors, Pertamina is experiencing difficulties amid the higher financial burdens from sales of premium gasoline due to oil price spike and rupiah depreciation against U.S dollar. If the selling price of premium and diesel remain until the end of 2018, its estimated that the cost that will be borne by Pertamina would reach Rp38.5 trillion.