OREANDA-NEWS. July 04, 2012. PT Pertamina (Persero) is ready to be the spearhead for Indonesia Incorporated program that will support the reconstruction process in Iraq as well as creating opportunities for business expansion and investment of Indonesia's state-owned corporations in Iraq, reported the press-centre of Pertamina.   

Iraq is a country with fourth largest oil reserve in the world and is agressively increasing its oil production to 11 million barrel a day by 2016 to support its reconstruction process. Reconstruction of Iraq requires large investment in oil and gas, electricity, construction, farming, telecommunication, health, water resource management, petrochemical, food industry, and medical sector.

"During the reconstruction process, Iraq needs the involvement of friendly countries, including Indonesia that historically has solid and strong bilateral tie with Iraq.

Pertamina has owned potential assets to be developed in Iraq, ready to be the locomotive of Indonesia Incorporated to fasten the reconstruction of Iraq as well as to develop businesses Indonesia's state-owned corporations in the country," said Pertamina's President Director Karen Agustiawan.

Indonesia's involvement will be conducted through Indonesia-Iraq collaboration and will be under Indonesia Incorporated program that will provide support in construction of power plants, piping network, housing, hospitals, schools, and fertilizer plants. This program is innitiated by Indonesia's state-owned companies, with Pertamina as the spearhead and supported by PT PLN (Persero), PT Wijaya Karya (Persero), PT Adhi Karya (Persero), and PT Hutama Karya (Persero) as subcontractors.

On the other hand, Indonesian government require support from Iraqi government to facilitate Pertamina in getting development right for Tuba Field and for reactivation of Western Dessert Block 3. The support will be sealed in a Memorandum of Understanding (MoU) between both governments today.

As widely known, Indonesia has been facing increasing demand for crude oil and hydrocarbon-based products. By 2015, it is predicted that Indonesia will face oil production deficit of 300,000 barrel per day so expansion of the National Oil Company overseas, such as to Iraq that is reach of oil and gas resources, is critically needed to address this issue.