Pertamina bonds fund Angola investment

Pertamina, bond, Angola, investment, Africa, exxonmobil, bpd, tamina, rupiah, wells, oil

Tamina will spend $1.5bn raised from global bond issues to invest in Angola and to develop its wells in the Cepu and West Madura blocks offshore Indonesia, state enterprises minister Mustafa Abubakar has said

The state-owned Indonesian giant was in talks to buy ExxonMobil’s 25 per cent stake in Block 31, offshore Angola, after bidding around $3.5bn.

Block 31 could start production next year at around 150,000 barrels per day (bpd).

The company has also taken over operation of the West Madura block from Kodeco Energy and gas exploration at the Cepu block from ExxonMobil.

The Jakarta Post reported Abubakar as saying the government had agreed to permit the company’s issuance of the 30-year dollar-denominated bond “in the remaining seven months of this year”.

Indonesia's government wants Pertamina to improve production in a country desperate to meet growing fuel demand and which relies on gasoline and diesel imports.

Pertamina's spokesman said in January that the company would invest 37.1tn rupiah ($4.33bn) on capital expenditure this year mostly on well explorations and production as it planned to drill 76 exploration wells and 221 production wells.

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