Pertamina to Supply 60 percent Indonesia Oil Production

Government targetted 60 percent of national oil production from PT Pertamina (Persero). Commisioner of Pertamina Sahala Lumbangaol mentioned, this will encourage Pertamina’s downstream business and bring Pertamina to be Indonesia’s biggest oil producer.

“Pertamina is an integrated oil company, from upstream to downstream. Pertamina will move on and keep developing like development of petrochemical based on coal,” said Lumbangaol in Pertamina Energy Forum 2018, at Raffles Hotel, Jakarta, Wednesday, November 28th, 2018.

A research and consultant company, Wood Mackenzie predicted stable crude oil price for the next 18-24 months. The stagnant price is considering bigger supply reduction from Iran over United State’s sanction. But on the other hand, oil supply from US will be increasing.

“We expected that oil price to remain stable for at least in the next 18 months,” said Wood Mackenzie Asia Pacific Upstream Oil & Gas Research Director, Andrew Harwood, in Pertamina Energy Forum 2018 held in Raffles Hotel, Jakarta, November 28th.

Harwood mentioned that crude oil price has been driven by market supply in the recent weeks. In the same event, Head of Asia Pacific Energy & Natural Resource Practice from management consultant Bain & Company, Brian Murphy agreed by mentioning that oil price direction in the last months has been more aligned with the fundamentals than the previous few months.

For achieving national energy tenacity, Ministry of Energy and Mineral Resources considered priority conversion from oil to gas. Director General of Oil and Gas in Indonesia Ministry of Energy and Mineral Resources Djoko Siswanto explained that government wanted to explore more in eastern Indonesia, while more resources found in the area is gas.