JAKARTA (Yosefardi) – State oil and gas company PT Pertamina decided to cut its investment for upstream business by US$4 billion as the crude oil price has dropped to below US$50 per barrel.
Dwi Soetjipto, Pertamina’s president director, told reporters on Thursday (Jan 29) that his management is now evaluating the investment as Pertamina would do the efficiency along with the oil price drop.
“We would cut Pertamina’s investment for upstream, from current plan of US$5-7 billion to US$3-5 billion,” he said.
Pertamina spends around Rp392 trillion for producing fuel, of which 93% is used to have crude oil. The rest 7% is used to finance the operation of refinery.