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Pertamina Seeks to Invest in Iraqi Crude Fields to Secure Supply

Bloomberg, 27 June 2012

PT Pertamina, Indonesia’s state-owned oil company, is seeking to buy stakes in at least two fields in Iraq to secure crude supply, according to President Director Karen Agustiawan.

The company may acquire 10 percent shares in an area that produces 2.5 million barrels a day and another that pumps 1.8 million barrels, Agustiawan told reporters in Jakarta today during meetings between Iraqi and Indonesian government officials. Pertamina also plans to resume operations in the Block-3 Western Desert acreage, she said. The company obtained rights to the field, which is in an exploration stage, in 2002, it said in a statement.

Indonesia, which left the Organization of Petroleum Exporting Countries in 2009 after becoming a net crude importer because of depleting domestic production, is seeking supplies from overseas through acquisitions.

“If we can have 10 percent shares in each field, we could supply 180,000 barrels and 250,000 barrels for Indonesia’s energy security,” Agustiawan said. The company still needs to negotiate with the operators of the fields and obtain approval from the Iraqi government, she said.