PHM Encourages Oil and Gas Production Increase in WK Mahakam to Support National Energy Needs

Jakarta, November 7, 2022 – PT Pertamina Hulu Mahakam (PHM), included in the Regional Kalimantan Zone Eight Subholding Upstream Pertamina continues to encourage strategic steps to maintain production and restrain the natural production decline rate in mature oil and gas fields in the Working Area ( WK) Mahakam. It is carried out to realize the commitment to the national oil and gas production target and to fulfill Indonesia's energy needs.

The General Manager of PHM, Krisna, said that PHM implemented various innovations and technological applications to increase the existing oil and gas wells' recovery rate to continue producing energy that is safe, reliable, compliant, environmentally friendly, and sustainable.

"We continue to try to contain the natural decline in production by implementing the best engineering practices in production operations, drilling, well intervention/well connection, and maintenance/inspection works. Supported by the SUPREME implementation in maintaining and improving PHM production and operation facilities reliability," said Krishna.

Krisna added that these strategic steps were taken to meet the 2022 WP&B target given by SKK Migas to achieve 550 MMscfd of Gas production and 19.5 Kbbld of Oil production.

The incentives from the Indonesian Government in early 2021 have opened up opportunities for PHM to continue the extensive work program to develop Mahakam WK, including the new wells exploration program.

“PHM plans to drill 95 development (exploitation) wells and one exploration well. We also succeeded in realizing 24 wells in the first quarter of this year. This drilling target is expected to encourage additional annual average production in 2022 by 3951 BOPD for oil and 133 MMSCFD for gas," Krisna added.

The increase in PHM production cannot be separated from the Jumelai, North Sisi, North Nubi (JSN) project contribution, which was on stream on May 20, 2022. The gas production from this project is estimated at 45 MMSCFD and condensate at 710 BCPD (barrels of condensate per day). Related to this, Krisna explained that the large production from the Jumelai Field supports current and future national oil and gas needs and is a driving force for the Indonesian economy, especially in East Kalimantan Province.

On a separate occasion, the President Director of PT Pertamina Hulu Indonesia, Chalid Said Salim, said that the increase in PHM production was supported by the successful installation rejuvenation program planning and implementation by PHM from May to June 2022.

“Advanced installation inspection and rejuvenation programs enable the continuous start-up of Sisi Nubi's new wells, thereby contributing significantly to gas wellhead flow rates above 550 MMscfd. The maintenance program is optimally done. Thus, it could reduce the LPO (Loss of Production Opportunity) by 1.4 BCF," Chalid said.

This year, the achievements in the PHM offshore area combined with the OPTIDRILL innovation managed to record the fastest drilling in the Mahakam area with a cost efficiency of more than 55%. This innovation uses optimization of side track preparation from ringless old cement wells with Hydraulic Workover Units, rigless well completion, and optimization of reservoir data acquisition without a Drill Pipe.

PHM took strategic steps to support the efforts to maintain and increase production, as well as restrain the rate of natural production decline. Through innovations and technologies implementation to increase the recovery rate of oil and gas wells, maintain baseline, add new wells, and massive well interventions. In addition, PHM also minimizes shutdowns and improves the production facilities' integrity as well as establishes and monitors Drilling Sequence and early identification of things that can disrupt the drilling schedule.

Furthermore, PHM ensures that Project Construction/Modification Projects are carried out On Time, On Budget, On Spec, and On Return (OTOBOSOR), improved technical competence and HSSE for PWTT, TKJP, and Contract Service workers through various certifications, mandatory HSSE training, HSSE meeting, safety stand down, and upskilling as well as strengthening the collaboration of various functions in PHM.

PT Pertamina Hulu Mahakam (PHM) is a subsidiary of PHI that runs upstream oil and gas operations and business in accordance with ESG (Environment, Social, and Governance) principles in the Mahakam Work Area in East Kalimantan. PHM, with other PHI subsidiaries and affiliates, continues to carry out various innovations and technological applications in producing energy that is safe, efficient, reliable, compliant, and environmentally friendly to realize #EnergiKalimantanUntukIndonesia. More PHI information is available at https://phi.pertamina.com.**