Continuing to Optimize National Energy Contribution, PHE Records 8% Production Growth in the Last 10 Years

Jakarta, June 1, 2024 – PT Pertamina Hulu Energi (PHE), as the Upstream Subholding, held the Annual General Meeting of Shareholders (RUPST) for the 2023 fiscal year and successfully recorded positive performance with an 8% growth in oil and gas production over the past ten years. PHE achieved oil and gas production of 1.04 MMBOEPD (million barrels of oil equivalent per day), contributing 69% nationally and 34% in gas lifting. PHE also recorded a profit of USD 2.77 billion in 2023.

Chalid Said Salim, President Director of PT Pertamina Hulu Energi, stated that PHE also completed drilling 799 development wells and 837 workovers, making PHE a significant contributor to the national economy through upstream oil and gas activities. PHE also acquired three new exploration blocks in 2023. Namely, Blok East Natuna, Blok Peri Mahakam, and Blok Bunga. As for Mergers & Acquisitions, PHE added a 10% PI in Iraq, extended the Algeria block, and acquired a 20% PI in Masela.

The exploration achievements were also very encouraging, with PHE achieving a 65% success ratio from 20 exploration wells with a total of 2C findings of 488 MMBOE. Completing 1,512 km² of 3D commitments in open areas was also part of PHE's efforts to unlock new exploration potentials to continue contributing optimally to national energy security.

“PHE's achievements are due to the company's efforts in managing key strategies in production baseline management, production growth through work plans and mergers & acquisitions, and reserve & resource growth while prioritizing Environmental, Social, and Governance aspects. It is to support national energy fulfillment and achieve the company's growth targets," Chalid added. 

With the support of PT Pertamina (Persero) as the Holding and the Government of the Republic of Indonesia, through exploration, development, and asset integrity activities, PHE plays a significant role in rebuilding the national upstream oil and gas industry capacity. PHE successfully recorded positive performance across all its subsidiaries, namely Regional 1 (Pertamina Hulu Rokan), Regional 2 (Pertamina EP), Regional 3 (Pertamina Hulu Indonesia), Regional 4 (Pertamina EP Cepu), and Regional 5 (Pertamina Internasional EP), PT Elnusa, PT PDSI, and PT Badak NGL. PHE's local content achievement in the upstream oil and gas industry of 60.19% is concrete proof of PHE's efforts to build national capacity in the upstream oil and gas industry.

PHE's positive performance is also expected to impact community empowerment, particularly around the Company's Work Areas, stemming from 596 programs across Pertamina's Upstream Subholding. PHE's Social and Environmental Responsibility programs also garnered 202 awards, nationally and internationally, including 12 Gold Proper and 19 Green Proper awards.

"In the ESG field, PHE has also laid a strong foundation. PHE consistently contributes to energy independence development. A reduction of 871 thousand tons of CO2 equivalent is part of the success of the energy efficiency and low carbon power decarbonization program. As of April 27, 2024, PHE successfully obtained a rating of 22.5 or medium risk in Environmental, Social, and Governance (ESG) and ranked ninth out of 309 global oil and gas producers," Chalid Said Salim said. 

The RUPST was attended by Board of Commissioners and Directors of PHE, including Rachmat Hidajat, Director of Strategic Planning and Business Development; Mery Luciawaty, Director of Risk Management; Dannif Utojo Danusaputro, Director of Finance and Investment; Muharram Jaya Panguriseng, Director of Exploration; Awang Lazuardi, Director of Development & Production; and Whisnu Bahriansyah, Director of HR & Business Support.

Alfian Nasution, Director of Logistics & Infrastructure of PT Pertamina (Persero), who attended as the representative of PHE's majority shareholder, expressed gratitude and appreciation for the achievement, noting that 2023 was a year of significant accomplishments for PHE.

"We are very grateful and appreciate PHE's performance despite the many challenges faced, yet it still recorded positive performance throughout 2023. We believe PHE will continue to explore potential and strength to support national energy security," said Alfian Nasution after the RUPST on Friday (May 31, 2024).

Vice President of Corporate Communication Pertamina, Fadjar Djoko Santoso, stated that Pertamina will continue to enhance its positive performance to support and achieve national energy security.

"Pertamina has allocated most of its Capex in the upstream sector to increase oil and gas production to achieve national energy security and independence," Fadjar said.

PHE will continue to invest in upstream oil and gas operations and business management according to the principles of Environmental, Social, and Governance (ESG). PHE is committed to the Ten Universal Principles of the UNGC in its strategy and operations as part of implementing ESG aspects. Supporting Governance aspects, PHE also consistently commits to Zero Tolerance for Bribery by ensuring fraud prevention and maintaining a clean company free from bribery, such as 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 achieve its vision of becoming a world-class oil and gas company that is Environmentally Friendly, Socially Responsible, and 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, and Governance (ESG) implementation across all Pertamina's business lines and operations.**