Indonesia`s state-owned PT Pertamina said it plans to invest up to $1.2 billion on its upstream oil sector this year.
Jakarta will disperse the money to various projects and ventures to boost much-needed production. Pertamina will invest $50 million to develop the Kedung Tuban and Alas Tua oil fields in the Cepu Block in East Java, Pertamina President Ari Hernanto Soemarno said.
The company submitted its plan of development to the Upstream Oil and Gas Regulatory Body, BP Migas, for the Kedung Tuban and Alas Tua fields.
The two fields are not included in the operation area of the Joint Operating Committee of Pertamina and ExxonMobil, which have a 45 percent share of the Cepu Block each.
Ari said the Cepu Block had many oil and gas fields and that most of them were controlled by Pertamina.
Pertamina would also finance the drilling of 170 oil and gas wells this year, including 35 exploration wells, he said. This year, Pertamina said it will also invest in oil ventures abroad in countries such as Sudan, Ecuador and Libya.
