Indonesia's Pertamina Targets 30% Cut To 2016 Upstream Operating Expenses

Reuters

JAKARTA, Feb 1 (Reuters) - Indonesia's Pertamina has reduced its 2016 upstream operating expense target by 30 percent because of declining crude prices, the state-owned energy company's upstream director, Syamsu Alam, said on Monday.

The company had earlier set 2016 upstream operating expenses, which cover oil well development and exploration costs, at around $4 billion, Alam said.

The company's average cost of onshore production for crude oil is $19-$20 per barrel, while the cost of production at offshore units like Pertamina's West Madura operation is higher, around $30 per barrel, Alam said.

Pertamina has also cut its 2016 crude output target to 296,000 barrels per day (bpd) from 326,000 bpd previously, another company official said.

(Reporting by Wilda Asmarini; Writing by Fergus Jensen; Editing by Tom Hogue)

Copyright 2016 Thomson Reuters. Click for Restrictions.

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