PGN SAKA Pacu Portfolio Exploration And Maintain Positive Performance In The Future

Photo: Doc. PGN

JAKARTA - PGN Saka as a subsidiary of PT Perusahaan Gas Negara Tbk (PGN) is increasingly intensifying the integration of exploration and production portfolios with existing fields. PGN President Director Saka Avep Disasmita said that in 2023, PGN Saka will continue drilling and complete production in various managed fields.

In 2022, PGN Saka has also succeeded in completing two large production projects, namely West Pangkah Field and Sidayu Field which contributed additional energy. Gas from Pangkah Field will be able to contribute energy to all of them, especially East Java.

Throughout 2022, PGN Saka noted that positive production operational performance had a significant impact on the Company's achievement. Production of assets operated by PGN Saka in 2022 exceeds the APBN target charged to PGN Saka, 109 percent each for the Pangkah Block and 101 percent for Blok Muriah.

Not only in the Pangkah Block and Muriah Block, for other block partners who contributed to PGN Saka's achievement, namely the development of the Ketapang Block in Bukit Tua Field phase 2B, drilling at four drilling & complement (D&C) wells in the Fasken Block which has been producing, as well as improving oil and gas commodity prices in 2022.

"In addition to rising oil and gas commodity prices and total production, this proud achievement is also supported by operational cost efficiency and financial portfolio management of PGN Saka which refers to the principles of On Time, On Budget, On Scope, On Safely, On Return (OTOBOSSOR). PGN Saka also managed to achieve HSSE performance of 1,939,756 working hours without accidents," said Avep, in his statement, Thursday, July 27.

The achievement of PGN Saka's financial indicators also exceeded the company's KPI target in 2022 the realization of EBITDA 69 percent higher than Neto SAKA's target and Revenue 48% higher than the 2022 RKAP target and an increase in financial performance with a net profit recording of 86.17 million US dollars or an increase of 1,202.90 percent from 2021. It is hoped that this achievement will continue to increase from year to year.

Avep revealed that PGN Saka's production came mostly from the Pangkah field amounting to 28,000 barrels of oil eq. PGN Saka supplied gas to PLN around 20 15 BBTUD, while oil was around 7,000 8,000 barrels from Pangkah Field.

"When we keep the upstream scale. In the future, we want to reactivate exploration, because it can add to the energy reserve portfolio. The exploration program is a strategic program for PGN Saka in 2023 for us to look back on its potential, especially those that can be developed in the future. Mainly gas in East Java and adding oil to the Indonesian nation, "said Avep.

Apart from Pangkah, PGN Saka will explore 1 (one) well in Kepodang Field. Exploration is carried out in order to increase oil and gas reserves. With the 14 inch gas pipeline operated by PT Kalimantan Jawa Gas (KJG), feed can be sustainable for Central Java and its surroundings.

"Hopefully the gas exploration will be successful and we can start production at the Kepodang Field," hoped Avep.

PGN Saka is also trusted to be able to explore and exploit oil and gas in Sangkar Block through PT Saka Exploration Timur with an area of 8,122.58 square kilometers. Total investment in Commitment must be the first three years of exploration by 3 million US dollars, including G&G (Geology& Geophysic) study activities, acquisition and processing of 150 square kilometers of 3D seismic data. Prospect and Lead locations are located in the Offshore area. Sangkar Block is adjacent to the Pangkah Block prospect area which is currently operated 100 percent by PGN Saka.

Avep also explained that PGN Saka prioritizes domestic resources to be able to participate in the upstream oil and gas sector.

"We and several oil and gas operators are directed by SKK Migas to be able to arrange to synergize with local entrepreneurs and increase the potential to be carried out," he said.

Digitalization by PGN Saka for operations has been carried out and is able to make businesses more efficient, and can provide value creation. This is an interesting thing to develop going forward, because it is quite sophisticated. We no longer depend on foreign software, we try to develop it from within the country. This digital era is very helpful upstream oil and gas and for other businesses," concluded Avep.

Now PGN SAKA has 10 upstream oil and gas assets in Indonesia and 1 asset abroad. One asset in this case is in Fasken, Texas to utilize unconventional gas and has produced around 80 90 MMSCFD. PGN Saka has 36 percent Percipating Interest (PI). Meanwhile in Indonesia, PGN Saka manages 10 assets. There are 2 operational assets where PGN Saka is the operator in Pangkah PSC that produces oil, gas and LPG. Then the PSC Muriah which supplies gas to PLN Tambak Lorok which is about 200 Kilometers away from PGN Saka's operations.

"The rest of us are partners, both in Ketapang with Petronas, Muara Bakau with Eni, Bangkanai in Central Kalimantan with Medco. Meanwhile, we got a block, namely Sangkar, which is not far from our operational area. Our goal in the future is to integrate our portfolio into the existing field and optimize all investments, especially in Pangkah Field which will support future development plans, "explained Avep.