Aiming for New Blocks, PT Pertamina International EP Expands to the Middle East

Dubai, July 3, 2024 - PT Pertamina International EP (PIEP), the International Upstream Subholding of Pertamina, has expanded its global presence by opening a Middle East branch office in Dubai, United Arab Emirates, on Tuesday, July 2, 2024.

Nicke Widyawati, President Director of PT Pertamina (Persero), believes that the Dubai branch office can serve as a vehicle for PIEP’s expansion and create opportunities to acquire new blocks in the Middle East.

“The potential for business development and new block acquisition is still very significant and wide open. We hope the inauguration of this new branch office will add physical facilities while providing additional value in both intangible and tangible benefits.”

Nicke added that with the opening of this office, it will be easier to obtain information related to international assets and support the optimization of operational costs between Jakarta and Dubai. It will enable Pertamina to more quickly seize existing business opportunities and act as an extension for Pertamina's business development while paving the way for other Subholdings to establish a presence here.

“The opening of this office is not only to strengthen operational capabilities but also to expand Pertamina Group's business, build Pertamina's supply chain, and serve as a hub for human resource development through relevant technology, business intelligence, as well as legal, supply chain management, and stakeholder relations teams with an understanding of business and legal regulations in this country," Nicke said.

Meanwhile, Chalid Said Salim, President Director of Pertamina Hulu Energi, as the Upstream Subholding, expressed similar sentiments.

“PIEP’s contribution to oil and gas production is about 20% to the Upstream Subholding. With the branch office in Dubai, communication and coordination with partners will be easier. I hope this step will simultaneously enable the Upstream Subholding’s subsidiaries to operate abroad, given the role of the International Region in opening opportunities in the Middle East, thus complementing the Upstream Subholding's efforts to optimize the domestic sector,” Chalid said.

Located in Almas Tower, the office will serve as PIEP’s representative office, promoting a global spirit to increase revenue and other added value.

Jaffee A. Suardin, President Director of PIEP, stated that initial talks for new oil and gas block investments have been conducted seriously with Iraq’s upstream oil and gas authority.

“We have invited Iraq’s upstream oil and gas authorities to Indonesia to obtain a direct business overview of Pertamina. Recent exploration and communication with Iraq’s upstream oil and gas authorities have been positive. Additionally, PIEP has invited Iraq’s upstream oil and gas authorities to join several of Pertamina’s managed assets.”

This office is PIEP's third representative office abroad. Previously, PIEP has PT Pertamina Algeria EP (PAEP) in Algeria and PT Pertamina Malaysia EP (PMEP) in Kuala Lumpur, which have been operating previously.

Geographically, the opening of the Dubai office reduces the time difference, making it more feasible to target opportunities in the Middle East, Africa, Europe, and America.

As is known, in the Middle East, Pertamina has been operating in Iraq through a 20% participation interest in the West Qurna 1 Block, contributing about 70% of PIEP’s total production. The oil block is in southern Iraq, near Basra, 400 kilometers southeast of the capital of Baghdad.

In its operation in West Qurna 1, Pertamina partners with Petrochina, ITOCHU, Basra Oil Company, and Oil Exploration Company.

Fadjar Djoko Santoso, VP of Corporate Communication of Pertamina, stated that PIEP’s expansion to foreign fields aligns with Pertamina’s vision and the aspirations of the Ministry of SOEs, which is Go Global.

“The opening of PIEP’s new office in the Middle East will open new potentials for business development in the upstream sector and further strengthen Pertamina's positioning in the international oil and gas industry,” said Fadjar.

PHE will continue to invest in the upstream oil and gas operations and business management following Environmental, Social, and Governance (ESG) principles. PHE has been listed in the United Nations Global Compact (UNGC) as a member since June 2022. PHE is committed to the Ten Universal Principles of the UNGC in its strategy and operations as part of the ESG aspects implementation. Supporting the Governance aspect, PHE is also committed to Zero Tolerance for Bribery by ensuring fraud prevention and maintaining a company free of bribery, including implementing the Anti-Bribery Management System (SMAP) standardized by ISO 37001:2016.

PHE continues to develop prudent and excellent operational management domestically and internationally to become a world-class oil and gas company that is environmentally friendly, socially responsible, and practices good governance.

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**