Jakarta – President Director of PT Pertamina Hulu Indonesia (PHI), represented by Arief Prasetyo Handoyo, VP Development & Drilling Regional Kalimantan, discussed PHI’s performance in the first quarter of 2022 during a National Media Gathering event on Tuesday, April 26, 2022.

On that occasion, Arief explained PHI’s commitment to incorporating Environment, Social, & Governance principles in its operations and business management. PHI implements various strategies and endeavors to meet its oil and gas production target for 2022, which contributes to the national oil and gas production target. The strategies include the Crown Jewel of Mahakam project, Borderless Operation, and Optimus cost efficiency project, as well as other programs, that have proven to generate positive results.

“We’re grateful that our gas production level as of right now has exceeded target, that is 646.88 million standard cubic feet per day and gas lifting at 601.89 million standard cubic feet per day. In terms of oil production, we’re at around 57,920 barrels of oil per day, and oil lifting at around 56,360 barrels of oil per day,” Arief said.

Arief also mentioned PHI’s discovery in the Manpatu 1-X Exploration Well at the beginning of 2022. The well is located within the South Mahakam Work Area, offshore East Kalimantan, with PT Pertamina Hulu Mahakam, one of PHI’s subsidiaries, as the operator.

“This discovery of a new oil and gas source is in line with our commitment to supporting production targets of 1 million barrels of oil and 12 billion standard cubic feet gas per day in Indonesia by 2030. We continue to carry out safe, reliable, compliant, and sustainable oil and gas operations that contribute to oil and gas reserves and increase production levels,” he explained.

Until March 2022, PHI has completed the drilling of 29 exploitation wells. Well Service reports excellent performance activities and outpaces its target with 1,779 jobs completed.

PHI manages work areas (wilayah kerja, or WK) located in the Subholding Upstream Pertamina Regional 3 Kalimantan, where the majority of the fields are mature. PHI carries out various strategic projects to work around this condition, such as IOR and EOR.

“IOR and EOR activities are carried out in Zona 8, Zona 9, and Zona 10 where we undertake optimization and stimulation activities, including water flooding, for example in Zona 8’s Handil Field and Zona 9’s Tanjung Field. We record strong performance of IOR and EOR projects during quarter I, realizing 2.29 MBOEPD,” Arief continued.

Regional 3 Kalimantan also has a strategic project, namely the Crown Jewel of Mahakam mentioned above and existing asset revitalization. Both projects aim to maintain business and operational continuity as well as to monetize the reserves of WK Mahakam’s Zona 8 and WK Sanga Sanga’s Zona 9 through baseline production management and new development projects (Field Development Optimization, OPLL). “As of March this year, the strategic projects have exceeded its production targets. We are going to work hard to keep up our best performance until the end of the projects in 2024,” said Arief.

On people, PHI’s management continues to drive innovation and creativity of its officers in Regional 3 Kalimantan through Continuous Improvement Program (CIP). The innovative ideas of three PHI officers, Risal Rahman, Ramdhani Rachman, and Muhammad Sobirin, brought recognition to PHI after being the Gold Winners in Malaysia Technology Expo and attaining the Excellent Invention in NRCT Awards in Thailand and Special Awards in CIIS Awards in Taiwan.

Reflecting on its financial performance in the year’s first quarter, PHI will continue to drive better results in operational and investment cost management, keeping in line with the targets defined in its corporate plan, RKAP. Every efficiency and innovative idea from each officer counts and will accumulate to create a powerful contribution to PHI’s excellence.

PHI is driving all efficiency efforts. During the first quarter of 2022, PHI exceeded its target for Optimus efficiency project, saving US$7.4 million or approximately Rp106 billion. For this achievement, PHI was recognized as The Ultimate Optimus Winner from Subholding Upstream Pertamina.

PHI is part of the Subholding Upstream Pertamina that manages oil and gas work areas and upstream assets in Regional 3 Kalimantan. In 2021, PHI contributed around 14% and 26% to Pertamina’s oil and gas production, respectively, which was vital in meeting Indonesia’s energy demand. PHI’s oil and gas operational and business continuity brings positive impacts for national energy needs and for creating values for all stakeholders, most importantly the government and the Indonesian people.