PHE’s Commitment to National Energy Sovereignty and Resilience

• 23 Sep 2024
• mk.novian.kusmana

JAKARTA – PT Pertamina Hulu Energi (PHE), as Pertamina's Upstream Subholding, continues to demonstrate its outstanding performance in the energy sector. From January to June 2024, PHE recorded a remarkable oil and gas production rate of 1.05 million BOEPD (barrels of oil equivalent per day), comprising 556,000 BOPD (Barrels of Oil Per Day) in oil production and 2.86 billion SCFD (standard cubic feet per day) in gas production. This achievement reflects the dedication and hard work of all regional offices and subsidiaries across the nation.

This year, exploration drilling has led to significant discoveries of new oil and gas resources, particularly from the Anggrek Violet (AVO)-001 well in South Sumatra, the Pinang East (PNE)-1 well in Riau, and the Julang Emas (JLE)-001 well in Central Sulawesi. These discoveries are instrumental in supporting the national oil and gas production targets of 1 million BOPD and 12 billion SCFD. 

In the Rokan Block, managed by PT Pertamina Hulu Rokan (PHR), new oil and gas sources were discovered at the Astrea-1 Exploration Well in Tanah Putih District, Rokan Hilir Regency, Riau, with a production potential of up to 3,000 BOPD. Additionally, PHR successfully implemented a breakthrough in the Kotabatak field, utilizing the Multistage Fracturing (MSF) horizontal well project, which has resulted in over 500 BOPD in production. The project was executed in three months, beginning in April 2024, and entered production on July 27, 2024.

In the Java Region, Pertamina Hulu Energi Offshore North West Java (PHE ONWJ) has taken strategic steps to bolster national energy security by optimizing domestic oil and gas reserves. A key initiative includes the reactivation of the LES platform, located offshore from Cilamaya, Karawang Regency, with an estimated reserve of 0.34 MMSTB of oil and 24.23 BSCF of gas. Initially discovered in 1994, the LES field has resumed production after deactivation in 2017, signaling renewed potential for energy generation.

Collaboration across Pertamina's Upstream Subholding is further exemplified by the deployment of the Emerald Driller jackup rig, which arrived in the Java Sea to support offshore drilling projects for PHE OSES and PHE ONWJ. This project represents a broader national effort to ensure energy security, independence, and sovereignty.

Meanwhile, in the Kalimantan Region, PT Pertamina Hulu Mahakam has made significant strides by inaugurating three pivotal projects within the Mahakam Working Area (WK)—the Bekapai Artificial Lift (Bekapai AL) Project, Peciko 8A, and Peciko 8B. These projects are expected to increase gas production capacity by 36 MMSCFD and oil and condensate by 16,000 BOPD, contributing to the national energy grid.

Supporting the energy transition to gas, PHE’s subsidiary, PT Badak NGL, has successfully reduced national LPG imports by increasing LPG production by 323% through its LPG Production Booster System (LPBS) at the Bontang LNG Plant, East Kalimantan. This innovation underpins PHE’s commitment to enhancing domestic energy resilience.

In Eastern Indonesia, Pertamina EP Donggi Matindok Field launched the Tedong (TDG)-001 exploration well, a crucial part of the Sulawesi Drilling Campaign. This campaign underscores Pertamina’s dedication to establishing new gas production centers in Eastern Indonesia. Additionally, the completion of Offshore 3D seismic surveys in the Bone and Southeast Seram areas, covering a total of 1,521 square kilometers, highlights PHE’s ongoing efforts to explore new frontiers for energy production.

On the international front, Pertamina International Exploration and Production (PIEP) expanded its global presence by opening a branch office in Dubai, UAE, marking its third overseas office after Algeria and Malaysia. This strategic move enhances Pertamina’s international operations, particularly in the Middle East, where it already holds a 20% interest in Iraq’s West Qurna 1 Block, contributing significantly to PIEP’s overall production.

In early 2024, PIEP also secured the SK510 exploration block in Malaysia through the 2023 Malaysia Bid Round (MBR), further solidifying Pertamina’s global growth strategy.

PHE remains steadfast in aligning its operations with Environmental, Social, and Governance (ESG) principles, ensuring sustainable business practices. Since joining the United Nations Global Compact (UNGC) in June 2022, PHE has integrated the Ten Principles of the UNGC into its strategy, demonstrating its commitment to ethical governance, environmental stewardship, and social responsibility.

In addition to environmental and social considerations, PHE upholds strict governance standards, enforcing a Zero Tolerance on Bribery policy through the Anti-Bribery Management System (SMAP), certified under ISO 37001:2016. This ensures the company maintains the highest standards of integrity and transparency in all its operations.

Through its prudent management, both domestically and internationally, PHE continues to evolve into a world-class oil and gas company that upholds environmental sustainability, social responsibility, and robust governance. With these principles at its core, PHE remains devoted to safeguarding national energy sovereignty and contributing to the nation’s energy resilience.
 

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