Pertamina Hulu Indonesia Implements Various Strategies to Respond to 2022 Challenges

Jakarta, April 29, 2022 – PT Pertamina Hulu Indonesia (PHI), as Pertamina Upstream Subholding Kalimantan Region, explained the Company's strategy in achieving the set business targets and conveyed the Company's performance in the first quarter of 2022 at the National Media Gathering Event on Tuesday, April 26, 2022.

On the occasion, VP of Development & Drilling PHI-Regional Kalimantan, Arief Prasetyo Handoyo, explained the Company's commitment to implementing Environment, Social & Governance (ESG) principles in managing the company's operations and business. Arief also added that PHI carries out various strategies and efforts to meet the oil and gas production target set for 2022 to achieve national oil and gas production. For example, the Crown Jewel of Mahakam project, the Borderless Operation strategy, the Optimus cost efficiency project, and other programs have proven to deliver positive results.

"Alhamdulillah, our current gas production is above the target, which is 646.88 million standard cubic feet of gas per day, and gas lifting achievement reaches 601.89 million standard cubic feet of gas per day. For oil production, it reaches 57,920 barrels oil per day range, and for oil lifting reaches 56,360 barrels oil per day," said Arief.

Furthermore, Arief added that PHI also started 2022 by obtaining findings at the Manpatu 1-X Exploration well in the South Mahakam Working Area off the East Kalimantan coast, operated by PT Pertamina Hulu Mahakam, a subsidiary of PHI.

"The discovery of this new oil and gas resource is in line with our commitment to support national energy security. We continue to carry out safe, reliable, compliant, and sustainable oil and gas operations, which can increase oil and gas reserves and maintain production levels," he said.

As of March 2022, PHI has completed 29 development (exploitation) wells drilling. Meanwhile, the achievement for the Well Service activity was achieved by recording 1,779 jobs that exceeded the set target.

PHI manages working areas in the Subholding Upstream Pertamina Regional 3 Kalimantan, most of which are mature oil and gas fields. For this reason, PHI needs to carry out various strategic projects, including IOR and EOR.

“IOR and EOR activities are carried out in Zone 8, Zone 9, and Zone 10 through various efforts such as optimization and stimulation, to water flooding as carried out in the Handil Field Zone 8, and Tanjung for Zone 9. Performance in the first quarter for the IOR project and EOR went well with a realization of 2.29 MBOEPD,” he said.

In addition, Regional 3 Kalimantan has a strategic project, namely the Crown Jewel Mahakam and existing assets revitalization. The objectives of these two projects are to maintain business continuity and operations as well as monetize reserves of Mahakam CA in Zone 8 and Sanga Sanga Zone 9 through baseline production management as well as implementing new development projects (Optimization of Field Developments/OPLL).

“Until March this year, the performance of this strategic project was able to exceed the set production target. We will continue to strive in maintaining the best performance until the end of this project in 2024," explained Arief.

In terms of human resources, all levels of PHI management continue to encourage innovation and creativity from Regional 3 Kalimantan Officers through the Continuous Improvement Program (CIP). One of the innovations driven by three PHI officers: Risal Rahman, Ramdhani Rachman, and Muhammad Sobirin, succeeded in making the Company proud as Gold Winners at the Malaysia Technology Expo, Excellent Invention at the NRCT Awards in Thailand, and Special Awards at the CIIS Awards in Taiwan.

Regarding the financial performance of the first quarter, PHI continues to strive to better manage operating costs and investment costs following the set RKAP targets. Every efficiency and innovation made by an individual officer becomes an extraordinary accumulation that encourages excellent company performance.

Efficiency efforts in all lines have been encouraged. This year, in the first quarter of 2022, PHI has exceeded Optimus' target with a 7.4 million dollars or around 106 billion rupiah efficiency. With the efficient performance carried out, PHI was named The Ultimate Optimus Winner from Pertamina's Upstream Subholding.

PHI is part of Pertamina's Upstream Subholding, which manages the working area and upstream oil and gas assets of Regional 3 Kalimantan. In 2021, PHI contributed about 14% and 26% of Pertamina's oil and gas production, which is very important in providing energy needs for Indonesia. The sustainability of PHI's oil and gas operations and business will have a positive impact on the fulfillment of national energy and create value for all stakeholders, especially the government and the Indonesian people.**