Indonesias PT Pertamina is looking to issue bonds in order to fund an expansion to its existing fuel storage capacity.
Plans for $1 billion (673 million) in dollar-denominated debt and Rp 1 trillion (71.8 million) in rupiah bonds in April as part of a $2.5 billion financing drive to fund its capital spending next year, with a focus on asset improvement or enhancement.
The state-owned company estimated next years capital expenditure at Rp 39 trillion, with plans to allocate about 70% for exploration and production at oil and gas fields.
The remainder would be spent on distribution, including renovations to Pertamina gas stations and increasing the size of its storage capacity in remote areas to prevent shortages.
It will build new petrol stations as well as new storage terminals for liquid petroleum gas to help curb shortages in far-flung regions of the archipelago.
Achmad Faisal, Pertaminas marketing and sales director, says the company is planning to increase its fuel-storage capacity in Tuban, East Java; Baubau; South Sulawesi; and Tanjung Uban, Riau.
Pertamina projects its oil output for next year to increase to 193,900 barrels a day from 174,800 barrels currently.
