Business Strategy

In line with the company’s mission  which has set five Pertamina strategic priorities, the Directorate of Upstream focuses on the development of the upstream sector through acquisition, main blocks development in Indonesia and international block development as well as accelerate the exploration, Geothermal development which focused on leadership, capabilities, mindset, and behavior which open to new ideas, accountable, collaborative, stakeholder engagement, excellent operation and superior Health, Security, Safety & Environment (HSSE).

 

With the dynamics of the oil and gas business which faced on fluctuations in crude oil prices, Director of Upstream will implement survive and sustainable growth strategy within 5 (five) years into the future with some of them focus on cost effectiveness in terms of operations, asset optimization, people organization, financing process as well as increased energy security.

 

Most of the Pertamina’s oil and gas Work Area (WA) are on domestic and a few others are abroad. Some WA abroad are obtained in recent years through acquisitions and participate in the tender. In the oil and gas business, Pertamina run it through its own operations and partnerships pattern.

 

Currently, the Directorate of Upstream manages seven subsidiaries engaged in the upstream oil and gas and geothermal, namely: PT Pertamina EP (PEP), PT Pertamina Hulu Energi (PHE), PT Pertamina EP Cepu (PEPC), PT Pertamina Geothermal Energy (PGE ), PT Pertamina Drilling Services Indonesia (PDSI), PT Pertamina EP Cepu-Alas Dara Kemuning (PEPC-ADK), and PT Pertamina EP International (PIEP). Moreover Directorate of Upstream is also developing technology supporting functions on upstream sector, namely Upstream Technology Center (UTC).

 

Each subsidiary and supporting functions run their duties as follows:

 

Pertamina EP

In line with the dynamics of the world oil and gas industry, the government issued the Statute on Oil and Gas No. 22, 2001. As a consequence on the Statute, Pertamina then switched to PT Pertamina (Persero) and only act as operator under the Cooperation Contract (CC) with the Government represented by Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas). The statute also requires PT Pertamina (Persero) to establish a subsidiary to manage the business in exploration, exploitation and production of oil and gas as a consequence of separation between upstream and downstream businesses.

 

Accordingly, PT Pertamina EP (PEP) was established on September 13th  2005. PT Pertamina EP manage the working area measuring 113,629.82 km2.  Pertamina EP Working Area are divided into five asset. The five asset operation is divided into 21 fields, i.e.

 

  • Asset 1 : Rantau Field, Pangkalan Susu Field, Lirik Field, Jambi Field, dan Ramba Field
  • Asset 2 : Prabumulih Field, Pendopo Field, Limau Field dan Adera Field
  • Asset 3 : Subang Field, Jatibarang Field dan Tambun Field
  • Asset 4 : Cepu Field, Poleng Field dan Matindok Field
  • Asset 5 : Sangatta Field, Bunyu Field, Tanjung Field, Sangasanga Field, Tarakan Field dan Papua Field

 

 

Pertamina Geothermal Energy

Pertamina Geothermal Energy is established on December 12th, 2006. This Pertamina’s subsidiary is engaged in the exploration and exploitation of geothermal utilization in 14 working areas (WA). From the 14 WAs, it largely developed by PGE (own operation), i.e. : Sibayak-Sinabung, seulawah, Sungai Penuh, Hululais, Lumutbalai, Ulubelu, Kamojang, Karaha, Lawu, and Lahendong.

 

PT Pertamina Geothermal Energy is becoming one of the leaders in the geothermal business and running its commitment to develop renewable energy in Indonesia. Geothermal business potential is seen as a strategic potential because it is one of the renewable energy sources. Indonesia has the world reserve potential of 28 GWe.

 

 

Pertamina EP Cepu

PT Pertamina EP Cepu, which was established on 14 September 2005, is a subsidiary of PT Pertamina (Persero) that focuses on the upstream oil and gas business. In the Cepu Block, Pertamina has a 45% interest in partnership with Mobil Cepu Ltd (as the operator) and the Regional Owned Enterprise (BUMD) that manages the KKS for the Cepu Block.

 

 

Pertamina Internasional EP

PT Pertamina Internasional Eksplorasi dan Produksi (PIEP) was established on November 18th, 2013. Currently, PIEP has three subsidiaries, i.e. PT Pertamina Iraq Eksplorasi Produksi (PIREP) with a focus on the management of West Qurna-1 field in Iraq with TSC-type (Technical Service Contract ), PT Pertamina Malaysia Eksplorasi Produksi (PMEP) which manages the block owned by Pertamina in Sabah and Sarawak, and PT Pertamina Algeria Eksplorasi Produksi (PAEP) which manage block 405a in Algeria.

 

 

Pertamina EP Cepu ADK

PT Pertamina EP Cepu Alas Dara Kemuning (PEPC ADK) was established on August 15th, 2013 to manage the Alas Dara and Kemuning (ADK) field. ADK  block is a Mining Working Area (MWA) of oil and gas which covers on Blora Regency, Central Java Province.

 

 

Pertamina Drilling Services Indonesia

PT Pertamina Drilling Services Indonesia was established on June 13th, 2008 as a business entity to conduct activities in the drilling management services. Services provided include drilling, workover, and drilling services with Daily Rate and Integrated Drilling Management (MPT) system for oil wells, gas, and geothermal.

 

 

Pertamina Hulu Energy

PT Pertamina Hulu Energi (PHE) is one of the subsidiaries in Pertamina’s Directorate of Upstream engaged in Pertamina operations and portfolio Participating Interest (PI) in domestic and overseas oil and gas blocks. PHE is currently managing 55 assets consists of 51 asset of conventional and unconventional oil and gas category (Coal Bed Methane (GMB) and shale gas). PHE as operator and non-operator are as follows:

  • As the operator: 18 domestic oil and gas blocks, 9 domestic GMB blocks, 2 domestic Shale Gas blocks.
  • As the PI portfolio manager: 17 domestic oil and gas blocks, 5 domestic GMB blocks, 2 oil and gas blocks overseas as well as 2 Donggi Senoro and Arun LNG Refinery projects.

 

 

UPSTREAM TECHNOLOGY CENTER

Upstream Technology Center (UTC) is a unit under the Directorate of Upstream which responsible in providing technology solutions in the upstream oil, gas, and new & renewable energy to support Pertamina exploration and production activities. This unit formulates reliable, responsive, and effective end-to-end solutions.

 

When talking about the upstream oil and gas business development, there is no other word except to talk about increased production and reserves. When discussing those two things then no other options, the technology will always get a very large role portion as well as the vanguard.

 

In this context, Upstream Technology Center serves as the holder of technology development control in exploration and production in Directorate of Upstream. There are a number of roles of Upstream Technology Center, the first Upstream Technology Center is a provider and developer of EP technology solutions needed by Directorate of Upstream and its subsidiaries. Its next role is, Upstream Technology Center is a center of excellence for technology support at the operational level of Directorate of Upstream subsidiaries

 

In addition, because of Upstream Technology Center is the only component of Directorate of Upstream whose penetration reach the operational of Upstream subsidiaries, the Upstream Technology Center can also serve as a referrer and at once as an implementer of upstream technology policy in its subsidiaries or in other words, Upstream Technology Center is in charge of aligning the Upstream technical policy at the subsidiary level.

 

Another important role is, Upstream Technology Center is an oil and gas technology innovation producer for the subsidiary and technical competence developer of human resources at the Upstream. The innovation could have originated from the need, or indeed entirely new, but it remains to support  for increasing production and reserves of oil and gas.

 

For oil and gas companies which loaded with high technology, the Upstream Technology Center is strategic. Moreover, the pace of oil and gas technology development is very fast, every month there are always new information, so we need a filter which is capable to filter which technology is right to be recommended to business development in Directorate of Upstream

 

Thus, the role of Upstream Technology Center is determining the policy of technology use. The selection used will affect the corporate spending efficiency. From this side, the technology is a decisive factor for the success of the upstream oil and gas business.

 

The Role of Upstream Technology Center does not stop there. It also placing itself as a bridge between the human resource potential in Pertamina Upstream with those spread at various universities and research centers in Indonesia, in the case of petroleum technology development. Through independent technology development, oil and gas industry in the country could receive reliable technology at an affordable price.

 
 

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