Throughout 2023, Pertamina Hulu Rokan Becomes Indonesia's Top Oil and Gas Producer
Jakarta, May 17, 2024 – Throughout 2023, PT Pertamina Hulu Rokan (PHR) successfully maintained its position as the largest oil and gas producer in Indonesia, with a production of 167,270 barrels of oil equivalent per day (BOEPD). It was announced by President Director Ruby Mulyawan during the PHR Annual General Meeting of Shareholders (AGM), attended by the board of commissioners and shareholder representatives in Jakarta on Thursday (16/5).
"In the second year of operation following the management transfer process, PT Pertamina Hulu Rokan continues to show significant progress. The company accelerates exploration and development activities through various breakthroughs by enhancing drilling equipment reliability, implementing parallel drilling activities (offline activity), applying technology and digitalization, and making investments that support the company's performance improvement," said Ruby.
In 2023, PHR implemented an investment strategy focused not only on operational equipment but also on technological development and human resources (HR), as well as investments in business development and non-business development. Through these measures, Ruby stated, PHR was able to maintain its position as the largest oil producer in Indonesia.
"We believe that through operational programs, business development, and digital technology innovation initiatives carried out throughout 2023, PHR can achieve sustainable growth," explained Ruby.
Amid global economic and geopolitical challenges, PHR's performance was appreciated by the Board of Commissioners. “We appreciate the management's efforts in achieving the performance targets set in 2023. Several initiatives carried out by the Directors, such as optimizing rig drilling cycle time, optimizing rig WOWS cycle time, well-clustering drilling program, increasing the number of effective rigs, well optimization and workover, and several other initiatives in supporting PHR's 2023 Work Plan and Budget (RKAP) achievement," said Virano Gazi Nasution, the Main Commissioner of PHR.
Furthermore, the Board of Commissioners is optimistic that PHR can achieve good growth in 2024, despite predictions of continued global economic challenges, through enhanced reliability in safety, installations, equipment, and technology and digitalization applications.
In 2023, PHR accomplished many things, one of which was the payment of a 10% Participating Interest (PI) fund amounting to IDR 3.5 trillion to PT Riau Petroleum Rokan (RPR), a Regional-Owned Enterprise (BUMD) managing the PI fund appointed by the Riau Provincial Government.
Moreover, PHR added oil and gas reserves by 86.95 million barrels of oil equivalent (MMBOE), exceeding the 2023 RKAP target of 73.51 MMBOE.
Following operational performance, PHR also paid attention to environmental aspects. In 2023, PHR managed to reduce carbon dioxide (CO2) emissions by 74,827 tons and achieved the Blue Proper rating (Public Disclosure Program for Environmental Compliance) issued by the Ministry of Environment and Forestry (KLHK) for three operational areas in Minas-Siak, Duri Steam Flood (DSF), and Bekasap-Rokan.
"Align with the principle of providing benefits to the community, PHR implemented 24 Social and Environmental Responsibility (TJSL) programs with a budget of IDR 24.69 billion, benefiting more than 32,000 recipients. These TJSL programs implementation is part of the sustainability principles application to support the Sustainable Development Goals (SDGs) achievement set by the government," said Ruby.
For corporate governance, PHR continues to strengthen its commitment to enhancing good corporate governance (GCG) principles quality, making improvements and refinements to governance structures, organs, and mechanisms. In February 2023, PHR received the ISO 37001:2016 certification for its commitment to implementing the Anti-Bribery Management System (SMAP). This international standard certificate was obtained by PHR after a series of external audits.
Meanwhile, based on calculations by PT Pemeringkat Efek Indonesia (PEFINDO), a rating agency recognized by the Financial Services Authority (OJK), PHR's health level based on the corporate rating is AAA. It indicates PHR's ability to fulfill long-term financial commitments.
Ruby assessed that PHR managed to navigate the challenging year of 2023 with good performance. This achievement was made possible by the significant roles played by the Board of Commissioners, shareholders, SKK Migas, the central and local governments, and the community.
"Thank you for the excellent cooperation established so far. With full optimism, let us continue to work and innovate to enhance the company's capabilities. Therefore, PHR remains strong and continues to grow as an accomplished and integrity-driven company," concluded Ruby.
Vice President of Corporate Communication of PT Pertamina (Persero), Fadjar Djoko Santoso, added that managing a giant oil and gas block like the Rokan Block by Pertamina reflects Indonesia's spirit to achieve energy resilience, independence, and sovereignty. "Through its 2023 performance, PHR has proven that its innovations and technology can maintain the production level of the Rokan block, making it one of the largest oil producers in Indonesia. At the PHR complex, we also have a 28.2-hectare solar power plant, which is also a source of pride for Pertamina in the development of energy transition," explained Fadjar.
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.**