The total budget for the expansion has not been fixed yet. But Dharmawan Samsu, upstream director at Pertamina stated that the budget would include funds required for expansion in Algeria and Iraq’s oil blocks and also to develop the African fields that were acquired through a stake in France’s Murel et Prom.

Rini Soemarno, minister for state owned enterprise in Indonesia, stated that Pertamina will have to acquire new blocks in Africa while improving the existing operations elsewhere.

The 2020 budget proposal for Indonesia’s Pertamina will include 1 trillion rupiah or $70.37 million allocated for buying stakes in offshore oil companies and strengthening the current balance.

Dharmawan Samsu added, “It is the government’s plan and it is positive for us.” He said that the plans regarding the expansion will be discussed with the government.

Pertamina’s target oil output for the year 2019 is 414,000 barrels per day. Out of this total, 112,000 barrels per day is expected to be produced through its overseas operations.

The company had previously decided to export its excess supply of jet fuel due to high stocks.

Pahala Mansury, the finance director at Pertamina had earlier stated that its jet fuel stocks are not too big in terms of volume and that it needs to be either exported or processed into other products. The number of fuel output stocks increased after the completion of Pertamina’s Blue Sky project in Cilacap.

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Recently, major deals worth $9.7 billion were signed by both countries. Other corporates that are part of these deals include Abu Dhabi investment company Mubadala and Dubai-based global ports operator DP World.

The deals were signed in the presence of Sheikh Mohamed bin Zayed Al Nahyan, crown prince of the Emirate of Abu Dhabi and Joko Widodo, president of Indonesia.

Indonesia’s Ambassador to the UAE Husin Bagis told the media that the new storage unit would be built to receive the LPG that would be imported from the Middle East.

He also added that, “Pertamina will need to prepare the location first, while Adnoc is fully ready for this project. They have a lot of money, we should utilise it.”

According to UAE Minister of State and Adnoc Group CEO Al Jaber, the collaboration with the Indonesian energy company demonstrates Adnoc’s ambition to expand its international investments to become a truly global energy company.

Indonesia spends $3 billion per year to import LPG which is almost 70 percent of the country’s national needs. It is also noteworthy that last year, Indonesia suffered a trade deficit of $500 million in its trade with the UAE. While the country’s imports from the UAE were worth $2 billion, its exports stood at $1.5 billion.

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