JAKARTA. PT Pertamina (Persero) will allocate 60% of its total investment budget in 2020 (US$ 5.18 billion), to stop the decline in oil and gas production.
Nicke Widyawati, Director of Pertamina, said that the decision was made considering national oil and gas production trends that are likely to decline.
In addition, Widyawati assesses that it needs to add new oil and gas reserves to extend the production period of the existing wells. "Then Pertamina's commitment is to allocate a fairly high investment in upstream," explained Widyawati as reported by Kontan on Friday (29/11) today.
Most of Pertamina's upstream investment in 2020 will be used for exploration in the Mahakam Block. This step was taken because the rate of decline in the Mahakam Block was the highest among other blocks managed by Pertamina. Since it was managed by Pertamina in 2018, the decline date of the Mahakam Block has reached 57%. (KR/AR)