Pertamina to acquire more oil and gas blocks abroad

State-owned oil and gas company PT Pertamina is seeking to acquire more oil and gas blocks in the country and abroad to meet its production target set by the government.

“Operations abroad are expected to contribute 33 percent to the companys target of production of 1.9 million barrel oil equivalent per day in 2025,” its Upstream Director Syamsu Alam said in a media gathering here on Monday.

The company would also be as aggressive in acquiring oil and gas blocks in the country, Syamsu said.

Syamsu said currently Pertamina already has oil and gas blocks in operation in 12 countries such as in Algeria, Iraq and Malaysia, the first to operate , followed by ones in Nigeria, Tanzania and Gabon.

Pertamina is preparing development of eight termination blocks in 2018 already handed over by the government to Pertamina including one in Sanga Sanga, East Kalimantan and OSES.

Domestic assets are also optimized, Syamsu said citing the project of PHE WMO Integration, drilling of Parang Nunukan, Randugunting, enhanced oil recovery (EOR) of old wells.

Indonesia is currently the 16th largest economy in the world with gross domestic product (GDP) at US$941 billion . In 2050, it is expected to break into the ranks of four largest after China, the United States, and India with GDP predicted at US$15.432 billion.

Indonesia, therefore, would need support of large supply of energy , Syamsu said.

In 2015 the countrys energy output reached 354 million tons equivalent oil including 271 million tons of coal and 113 million tons of oil, gas and renewable energy.

While consumption of oil and gas is still high, production is decreasing with the shrinking known oil and gas reserves .

Although Indonesia still has 60 oil and gas basins , the countrys oil reserves are ranked only the 26th in the world at 4 billion barrels. Similarly the countrys gas reserves , Indonesia is the 14th largest in the world with reserves of 100 TCF.

The policy of Pertamina to acquire more oil blocks abroad to increase its reserves will contribute to guaranteeing energy supply in the country .