Upstream

Upstream Business Activity

Pertamina's upstream business activity is managed by the Upstream Directorate, which include exploration, drilling, development, and production of oil and gas and geothermal, provision of technology services and drilling services both within and outside the country. In order to achieve upstream growth as one of Pertamina's 8 Priority Pillars, the business strategy in the Upstream sector is to increase production and add new oil and gas reserves, both organically through Improved Oil Recovery (IOR) and Enhanced Oil Recovery (EOR) activities on existing assets, as well as inorganically by exercising merger and acquisition (M & A) strategy of oil and gas blocks both at home and outside the country.

The above activities are carried out by the Company through its Upstream Subsidiary Entities (APH) acting as strategic armlength of the Company in the upstream sector, namely:

• PT Pertamina EP (PEP) : http://pep.pertamina.com
• PT Pertamina Hulu Energi (PHE) : http://phe.pertamina.com/
• PT Pertamina EP Cepu (PEPC) : http://pepc.pertamina.com/id/index.html
• PT Pertamina EP Cepu Alas Dara Kemuning (PEPC ADK) : http://pepcadk.pertamina.com/
• PT Pertamina Internasional Eksplorasi Produksi (PIEP) : http://www.piep.pertamina.com/
• PT Pertamina Geothermal Energy (PGE) : http://pge.pertamina.com/
• PT Pertamina Drilling Services Indonesia (PDSI) : http://pdsi.pertamina.com/
• PT Pertamina Hulu Indonesia (PHI) : https://phi.pertamina.com/
• PT Elnusa Tbk. : https://www.elnusa.co.id/

In 2018 Pertamina’s total oil and gas production was 921 MBOEPD, 33% higher than the production in 2017. Oil production in 2018 was 393 MBOPD, a 15% increase compared to the previous year. While gas production was 3,059 MMSCFD, a 50% increase compared to the previous year.

Throughout 2018, total realization of exploration drilling was 14 wells consisting of 8 PEP wells, 5 PHE wells, and 1 PGE well. While the total realization of 2D Seismic was 2,490 km consisting of PEP 1,090 km and PHE 1,400 km. The total 3D Seismic realization covering 928 km² consists of PEP 507 km² and PHE 421 km².

Realization of 2C Resources in 2018 was 794.31 MMBOE consisting of 270.19 MMBO crude oil and 3,036.63 BSCF natural gas. The 2C resources contribution was from PEP 71 MMBOE, PHE 195 MMBOE, and PHI 529 MMBO.

In August 2018, PT Pertamina EP through exploration activities in Sumur Akasia Maju (AMJ)-001 well succeeded in finding a new hydrocarbon resource of 11.45 MMBOE. This success was also obtained from other drilling activities executed by PT Pertamina EP, including Titanum (TTN) -001 well, Pinus Harum (PHR)-001 well, and Wolai (WOL)-001 well. While PT PHE also succeeded in finding hydrocarbon resources from the drilling activities in N-7, SES-1, Kumis-2 and KKX-1 wells. The drilling of the wells also aims to prove the new prospects of exploration activities which will eventually be able to help increase PT Pertamina's production.

Source: Annual Report Pertamina 2018