Indonesia's state-owned oil producer is set to expand it overseas lubes operations.
Pertamina Lubricant has set aside Rp 8trn ($896m) for investment in overseas ventures and domestic operations which will boost the organisation's revenues. A division of the state-owned PT Pertamina, the lubes operation will spend around RP 1trn on specific expansion into overseas markets.
Top of the list of targets are Thailand and Dubai, with Australia, the US and Spain also in the company's sights to develop collaborative operations to increase lubes output. Pertamina already exports to 19 countries around the world from Bangladesh to Belgium, Saudi Arabia to Singapore. In total, the company shipped nearly 117 thousand kilolitres of lubricants in 2011.
The remainder of the capital expenditure is likely to be focused on maintaining Pertamina's 60% share of the domestic market, particularly in the purchase raw materials and development of additives for its three Indonesian lubes blending plants.