Optimizing Operational Performance, Pertamina is Committed to Maintain National Energy Security

Pekanbaru, August 8, 2022 – Pertamina strives to maximize operational performance to maintain national energy security. Operational excellence is evident in the upstream sector. Pertamina had increased oil and gas production by 965 thousand barrels of oil equivalent per day (MBOEPD) compared to the same period last year of 850 MBOEPD.

President Director of Pertamina, Nicke Widyawati, said the achievement was thanks to several optimal efforts made by Upstream Subholding officers. The first was increasing drilling and rework activities to optimize existing wells. Second, increasing activity in production facilities and supporting facilities. Third, technology and digital transformation implementation in Pertamina's Upstream Subholding.

One of the optimal efforts by Upstream Subholding is the successful Rokan Block management transfer implementation in Pertamina Hulu Rokan in the past year.

"PHR was able to go through a transition process, including cultural involvement such as adjusting business processes, work culture, and safety management systems, as well as sharing best practices with other Pertamina entities. Thus, the Rokan Block operations run smoothly," Nicke said.

According to Nicke, with high dimensions and the largest scale in the region (SEA), the Rokan Block management by PHR is the best model for management transfer.

In a year of management transfer, PHR succeeded in carrying out 370 drillings, or three times more than the previous, such as 105 well drilling with 15,000 Work Over (WO) activities execution and Well Intervention Well Services (WIWS), which absorbed 60% of the Domestic Component Level (TKDN) to drive the national economy.

"The massive drilling has automatically increased the active drilling rigs doubled from the initial 9 to 21 rigs and will keep increasing to 27 rigs until the final quarter of 2022. Similarly, with the use of WOWS rigs, currently, there are 32 WOWS rigs and will keep increasing to 52 WOWS rigs every 4th quarter of this year," she explained.

Nicke explained that the massive and aggressive drilling had increased oil and gas production from an average of 158.7 MBOPD before the management transfer to the current 161 MBOPD. Reserve volume also increased from 320.1 MMBOE at the beginning of the transition to 370.2 MMBOE after one year of management transfer.

"Certainly, even though the increasing global oil prices have had a positive impact on Pertamina in the upstream business. However, the condition has put pressure on the fuel business," Nicke said.

The pressure in the fuel supply field is influenced by many factors, including growing foreign geopolitical factors and the increasing demand for domestic fuel products when Pertamina's refineries unable to meet these needs.

"Therefore, we strive to maintain intake according to the downstream optimization plan, increasing reliability through preventive programs, predictive maintenance, and turnaround, as well as refinery development and construction as mandated by the government through the RDMP and GRR projects," she explained.

Operational optimization is also carried out by other business lines. Pertamina's Subholding Power, New & Renewable Energy (PNRE) seeks to maximize electricity production by increasing activity in production facilities and supporting facilities, such as Solar Power Plants (PLTS) and PLTPb, while making maximum efforts to suppress unplanned shutdowns.

Pertamina Gas Subholding seeks to maximize operations by rolling out various programs, including PGN Sayang Ibu and PGN Masuk Desa. Subholding Gas also implements operational excellence, improves cost optimization programs, and increases the gas network and LNG trading capacity.

Meanwhile, Pertamina's Subholding Integrated Marine & Logistics improve synergies with various stakeholders, both internal and external. By carrying out green marine logistics, the subholding led by PT Pertamina International Shipping (PIS) is aggressively developing the regional market.

"Similarly important at the energy distribution forefront throughout the country is the operational optimization efforts by Subholding Trading & Commercial through various intensive programs, such as BBM Satu Harga, Pertashop, OVOO, Pertamina One Solution, MyPertamina, NFR, Ecosystem EV, and Subsidi Tepat Saran," she explained.

Nicke emphasized that the various operational performance optimizations are Pertamina's commitment to maintaining national energy security.**