Officially Manage Peri Mahakam Working Area, Pertamina Demonstrates Commitment to Safeguard National Energy Supply
Jakarta, July 13, 2023 - PT Pertamina Hulu Borneo, with Eni Peri Mahakam Ltd., has officially become the Peri Mahakam Working Area (WK) operator through the cooperation contract signing on May 30, 2023. Eni will serve as the operator during the exploration phase, while Pertamina will take over as the operator during the development phase.
The cooperation contract for the Peri Mahakam Working Area is valid for 30 years under the cost recovery scheme. The committed investment value for the first three years of the exploration phase amounts to US$7.2 million, which includes G&G study activities, acquisition, and processing of 150 km2 of 3D seismic data, as well as drilling one exploration well.
Wiko Migantoro, CEO of Pertamina Hulu Energi (PHE), explained that the Peri Mahakam Working Area management will be one of PHE's exploration focuses to support national energy resilience and strengthen the company's portfolio. "PHE is committed to applying all the knowledge and best practices that the company has, particularly in oil and gas operations in the East Kalimantan region, in accelerating the strategic gas reserves discovery in the Peri Mahakam Working Area."
Wiko Migantoro also emphasized the importance of the Peri Mahakam Working Area's contribution to future national production. "We believe that PHE's extensive presence through its affiliates in the region can benefit the PHE-Eni consortium in fulfilling the definite commitments and exploration milestones in the Peri Mahakam Working Area. It is aimed at accelerating the Peri Mahakam Working Area contribution to increasing national production as soon as possible," Wiko explained.
Located offshore and onshore in East Kalimantan, the Peri Mahakam Working Area holds a strategic position with significant potential for synergy with other nearby oil and gas fields operated by Pertamina and Eni. Positive synergies are expected not only in the upstream sector but also with Bontang LNG and Balikpapan refinery, which require additional oil and gas supplies amidst declining production from existing fields.
With the successful Peri Mahakam Working Area acquisition, Pertamina and Eni have proven as key players in Indonesia, particularly in the East Kalimantan region. The experience and capabilities built in managing oil and gas fields in the region will be crucial in ensuring the success of managing the Peri Mahakam Working Area. It also demonstrates Pertamina's commitment to maintaining a reliable energy supply for the nation while contributing to the economic development and welfare of the community in the East Kalimantan region.
Pertamina Hulu Borneo is Pertamina Hulu Energi’s affiliate, a Subholding Upstream of Pertamina. PHE will continue to invest in upstream oil and gas operations management, according to the ESG (Environment, Social, and Governance) principles to support the government's targets of achieving 1 million BOPD of oil production and 12 BCFD of gas production by 2030. PHE has been registered as a participant/member of the United Nations Global Compact (UNGC) since June 2022. PHE is committed to UNGC’s Ten Universal Principles in its strategy and operations as part of the ESG aspects implementation. PHE will continue to develop its operations management domestically and internationally with professional operational excellence to become an environmentally friendly, socially responsible, and well-governed world-class oil and gas company.
Fadjar Djoko Santoso, Vice President of Corporate Communication of PT Pertamina (Persero), explained that to maintain energy resilience, Pertamina encourages its subsidiaries in the upstream sector to increase production and reserves in domestic oil and gas fields, including the Peri Mahakam Working Area.
"Pertamina's largest investments are still in the upstream sector due to the ongoing increase in domestic oil fuel needs," Fadjar said.
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.**