Pertamina to increase capital spending

State-owned PT Pertamina plans to increase capital spending by more than 40% this year and most of the funds will be used to develop the oil and gas upstream sector. According to the company’s spokesman, Mochamad Harun, the company will spend 80% of the company’s 52.8 trillion rupiah (US$5.90 billion) budget on mergers and acquisitions of domestic oil gas blocks, and to increase overseas portfolio performance. The remaining 20% will be spent on infrastructure development and the upgrading of refineries, terminal expansion and fuel and gas transport systems. (January 30, 2012)