INDONESIAN OIL UP 12%
PLATTS - Indonesia's state-owned Pertamina has produced 343,000 b/d of crude oil in the first-half of 2017, up 12% year on year, upstream director Syamsu Alam said late Wednesday.
"I think the crude production this year can meet our 2017 target of 354,000 b/d. But gas production may be ... lower compared with the target of 2.08 Bcf/d, due to lower demand and some gas fields [not being able to] produce," he said.
The company produced 2.022 Bcf/d of natural gas in H1 2017, up 4% from 1.938 Bcf/d in the same period a year ago, Alam said.
Meanwhile, Pertamina's H1 2017 net profit slid 24% year on year to $1.4 billion, despite revenue rising 19% to $20.5 billion, the president director of Pertamina Elia Massa Manik said.
"In the first half of 2017, the external environment was still very 'volatile' with the world oil price continuing to rise. The rising of crude oil price has become an incentive for the upstream business. It has, however, also affected the increase in cost of goods sold in the downstream sector, which has a significant impact on the company's net profit," Manik explained in a statement released Wednesday.
The Indonesian Crude Price in H1 reached $48.9/b, compared with $36.16/b in the same period a year ago, Manik said.
Pertamina forecasts that its net profit this year may reach only $2.3 billion, down from the original target of $3.04 billion, finance director Arief Budiman said.
FUEL PRICES NOT RAISED DESPITE HIGHER ICP
The government decided not to increase the price of 88 RON gasoline and diesel despite the higher ICP, leaving Pertamina to bear the subsidy burden.
Pertamina has had to shoulder a subsidy burden of Rupiah 400 ($0.03)/liter for 88 RON gasoline, with the fuel's market price reaching Rupiah 6,850/liter in H1 2017 while the pump price was maintained at Rupiah 6,450/liter, Pertamina's marketing director Muchamad Iskandar said late Wednesday.
The market price for diesel reached Rupiah 6,350/liter, while the pump price is fixed at Rupiah 5,150/liter until the end of this year, Iskandar said.
Pertamina is making an effort to cut its subsidy-related losses by increasing the sales of non-subsidized 90 and 92 RON gasoline.
Sales of 88 RON gasoline dropped 43% year on year to 3.28 million kiloliters in H1 2017 from 5.78 million kl in H1 2016.
Sales of 90 and 92 RON gasoline increased by 25% to 12.24 million kl in H1 2017 compared with 9.75 million kl in H1 2016, according to Iskandar.
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