Observers Call Pertamina's Performance Throughout 2023 Positive When Central Conditions Are Difficult

Illustration (Photo: Doc. ANTARA)

JAKARTA - Director of the Center for Energy Policy M Kholid Syeirazi appreciated Pertamina's positive performance throughout 2023 which continued to increase in the midst of difficult situations including uncertain geopolitical conditions and high currency exchange rates.

"There is an increase in performance. It must be appreciated because it occurs in a difficult situation," said Kholid as quoted by ANTARA, Friday, June 14.

On the upstream side, the company's performance continued to increase so that now Pertamina's production reaches 70 percent of the national demand portion, while in the gas sector it reaches 37 percent.

He said Pertamina's success could not be separated from the production of oil fields (work areas/WK) such as the Rokan Block, Mahakam Block, and other working areas.

According to him, the success of the oil and gas BUMN in managing various WK is also not easy, even though it is a block over management, but if Pertamina is incompetent, it will certainly experience a decline in production.

Likewise, on midstream and downstream, Kholid hopes that Pertamina will continue to improve performance, including immediately completing refinery construction, so that it can support increasing energy security and reducing imports.

Separately, BUMN observer from the Datanesia Institute Herry Gunawan also assessed Pertamina's positive performance, where success in the upstream sector could not be separated from various technological innovations carried out.

Not only to find new oil sources, he added but also to increase production. For example through enhanced oil recovery (EOR).

According to him, in the midst of uncertain geopolitical conditions, the state company is also considered capable of managing operational management properly, including carrying out very good efficiency, including value chain innovation in the upstream to downstream sector.

"The price of oil in the international market cannot be controlled by Pertamina, but by the market. So yes, it must be accepted as it is. Meanwhile, operational activities can be controlled, and this is what Pertamina does, namely cost optimization. This keeps the company's performance positive," said Herry.

Previously, Pertamina President Director Nicke Widyawati after the Company's Annual General Meeting of Shareholders (AGMS) for the 2023 Financial Year at the Ministry of SOEs, Jakarta, Monday, June 10, said the company's performance throughout 2023 had increased.

This achievement is due to the efficiency, optimization of costs, liabilities management, and commitment to settle government receivables to Pertamina.

"Along with operational growth, financial achievement has also increased thanks to efficiency, cost optimization, liabilities management, and commitment to settle government receivables to Pertamina," he said.

In the 2023 financial year report, oil and gas production grew 8 percent from 2022 by 967 thousand barrels of oil equivalent per day (MBOEPD) to 1,044 MBOEPD in 2023.

Likewise with processing and petrochemicals which experienced an increase in production of 341 million BBL in 2023. Meanwhile, in the marketing and commercial business, the realization of sales of fuel and non-BBM products also increased to 100 million KL in 2023.