JAKARTA (TheInsiderStories) - Fuel import of Indonesian energy holding firm, PT Pertamina, to rises by 36.25 percent from 86.9 million barrels of oil to 118.4 million barrels of oil in this year, said the CEO in a hearing with the parliament yesterday. In detail, the state-owned firm to import RON 88 around 53.7 million barrels with price around US$51.7 a barrel and RON 92 amounting to 59.3 million barrels at $53.3 per barrel.
The CEO, Nicke Widyawati, ensured that the balance between domestic crude export and import still give a positive impact to the current account deficit. She estimated that the plan to export crude oil will offset the fuel imports and will generate a surplus of $75 million based on the average of oil price at $51 per barrel.
On the Mozambique issues, she explained, that the company will conduct a study on the gas supply and demand, including the purchase of liquefied natural gas from the country. Her explanation following the dispute between the company and Mozambique LNG1 Company Pte. Ltd., which resulted in a lawsuit of around Rp39.5 trillion (US$2.82 billion).
“There is no lawsuit, because the contract will be effective later in 2025,” she told the lawmakers.
The negotiation process of the two parties has been carried out since 2013 referring to the projection of the Indonesian Gas Balance issued by the energy and mineral resources (EMR) ministry. In this projection, in 2025, Indonesia is predicted to experiences a gas deficit.
Then on August 8, 2014, Pertamina signed a head of agreement with a volume one million tones per year for 20 years at the market prices. In 2017, the two parties began to hold talks to conduct an addendum due to changing market conditions.
Furthermore, in 2018, the LNG Pertamina - Mozambique deal was finalized with a period of July 6 to Dec. 31, 2018. Then on Feb. 13, 2019, Pertamina and Mozambique signed a sale and purchase agreement and the shipments would start in late 2024 or early 2025.
In 2020, the energy producer booked a net profit $1 billion after ran a number of initiatives that succeeded in restoring the company’s performance. Among those initiatives are the improvement of upstream and refinery productivity, as well as efficiency in all areas — including a 30-percent cut of operational expenditure and reprioritizing investment budget allocations.
Throughout 2020, said Widyawati, Pertamina face various sentiments such as low world oil prices, weak demand, and exchange rate depreciation. But the company managed the problem by buying reserves in large quantities and storing them in landed and floating storages.
In this year, the company targeting to post a net profit $800 million also earning before interest, taxes, depreciation, and amortization more than $7 billion. The producer also has planning to bring a number of subsidiaries to raise funds from the capital market.
Widyawati said, her office needs $133 billion in funds until 2026 to boost the production capacity. For this year, she said Pertamina would spend around $6.2 billion for a number of national strategic projects. Beside from internal funding, 10 percent of the funds its expecting from project financing, 28 percent from external financing, and 15 percent from equity financing.
Written by Editorial Staff, Email: theinsiderstories@gmail.com
