PHE Reaches Production of 1 Million Barrels after 2 Years of Subholding

JAKARTA - PT Pertamina Hulu Energi (PHE) noted that it had succeeded in achieving production exceeding 1 million barrels of oil equivalent per day (BOEPD) for two years as Pertamina's upstream (upstream) subholding.

"We are very grateful that during the two years of being an upstream subholding, we have succeeded in achieving production exceeding 1 million BOEPD or 1,047 MBOEPD from the 42 oil and gas blocks that we manage as of today. PHE's national contribution is also increasingly significant with oil lifting of 67 percent and gas lifting of 31 percent," said PHE Corporate Secretary Arya Dwi Paramita in a statement in Jakarta, quoted from Antara, Monday, September 11.

PHE as Pertamina's Upstream Subholding has been carrying out its role as coordinator of Pertamina's upstream oil and gas working area for two years right in September 2023. In its two year journey, PHE recorded positive performance in terms of contribution to oil and gas production growth in 2022 of 7.89 percent compared to 2021 and a net profit of 4.67 billion US dollars in 2022.

Furthermore, Arya also noted that to date, PHE has succeeded in drilling 431 development wells, 442 workovers (rework to move layers), and 18,514 well services (well repairs).

Apart from that, PHE also mentioned various large projects such as Optimization of Advanced Development of the Mahakam Field (OPLL), Sanga Sanga OPLL, Development of the Jambaran-Tiung Biru Unitized Gas Field, and secondary recovery (advanced stage draining) using the waterflood method.

Meanwhile, in the exploration sector, PHE achieved a success ratio of 100 percent with a total 2C resource discovery of 118 MMBOE (million barrels of oil equivalent). In 2022, PHE succeeded in obtaining 2C resource findings of 345.4 MMBOE.

PHE claims that the formation of Pertamina Upstream Subholding provides added value that strengthens and optimizes Pertamina's position to be more focused on the upstream oil and gas sector.

PHE also said that it has succeeded in becoming a center of excellence supported by a lean, agile and efficient organization, and is expected to become the best in the Indonesian upstream oil and gas industry.

Apart from that, the integration of subsurface data opens up opportunities for PHE to integrate the development of all work areas in the same area. Unlimited operational synergy means operational entities under PHE can utilize joint production facilities by work area managers in the same area while forming strategic alliances for service companies under them.

After the formation of Pertamina's Upstream Subholding, it also had an impact on a more optimal project approval process and cost effectiveness through the upstream optimization program.

Meanwhile, PHE has a main strategy, namely managing production baselines, increasing production growth through work plans and mergers & acquisitions as well as increasing reserve & resource growth by always prioritizing environmental, social and governance (ESG) aspects. This is to support national energy fulfillment and achieve the company's growth targets.

In 2023, PHE is also implementing various strategies to increase production, including adding a 10 percent participating interest or participation rights in Iraq, acquiring the East Natuna, Bunga and Peri Mahakam work areas, extending the Algerian Menzel Ledjmet Nord (MLN) contract and signing an agreement purchase of ownership of the Masela block.

PHE stated that all the strategies implemented were aimed at maintaining the sustainability of domestic upstream oil and gas and encouraging PHE's performance on the international stage.