PHE's Contribution to Supporting National Energy Sovereignty and Security

Jakarta, August 17, 2024 – PT Pertamina Hulu Energi (PHE), as Pertamina's Upstream Subholding, continues to demonstrate outstanding performance. From January to June 2024, PHE recorded an oil and gas production of 1.05 million BOEPD (barrels of oil equivalent per day), consisting of 556 thousand BOPD (barrels of oil per day) of oil production and 2.86 billion SCFD (standard cubic feet per day) of gas production. PHE's achievements are also attributed to the contributions and hard work of all its regional offices and subsidiaries.

Earlier this year, exploration drilling successfully discovered new oil and gas resources at the Anggrek Violet (AVO)-001 well in South Sumatra, the Pinang East (PNE)-1 well in Riau, and the Julang Emas (JLE)-001 well in Central Sulawesi.

To support the national oil and gas production target of 1 million BOPD and 12 billion standard cubic feet per day (BSCFD), PT Pertamina Hulu Rokan (PHR), as the Sumatra Regional Office, successfully discovered new oil and gas resources in the Rokan Block, with a production potential of up to 3,000 BOPD. PHR discovered these new resources through drilling the Astrea-1 exploration well in Tanah Putih District, Rokan Hilir Regency, Riau.

PHR continues to explore and produce oil in the Rokan Working Area (WK), including through the Multi Stage Fracturing (MSF) project at a horizontal well in the Kotabatak field, Kampar Regency, Riau. Through this breakthrough, PHR successfully executed the MSF Kotabatak well, producing over 500 BOPD. The execution of this horizontal well MSF project took approximately three months, starting in April 2024, and began production on July 27, 2024.

In the Java Region, to maintain energy security, Pertamina Hulu Energi Offshore North West Java (PHE ONWJ) is committed to optimizing the potential of domestic oil and gas reserves. One of the strategies to increase production is the reactivation of the LES platform. The LES platform, located 25 kilometers offshore from Cilamaya, Karawang Regency, is estimated to contain oil reserves of 0.34 Million Stock Tank Barrels (MMSTB) and 24.23 Billion Standard Cubic Feet (BSCF) of gas.

The LES field was discovered in 1994 through the LESA-1 exploration well. The LESA platform began production in 2001 with a production performance of up to 3.5 MMSCFD through three active wells. These three existing wells will be reactivated after being shut down in November 2017.

Collaboration within Pertamina's Upstream Subholding continues to bring a new spirit and symbolize a national revival in achieving energy security, independence, and sovereignty. It is demonstrated by Pertamina Drilling Services Indonesia (PDSI), which successfully brought the jackup rig ‘Emerald Driller’ to the Java Sea to be used in offshore drilling projects by PT Pertamina Hulu Energi Offshore Southeast Sumatra (PHE OSES) and PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ).

Meanwhile, in the Kalimantan Region, PT Pertamina Hulu Mahakam recently inaugurated three projects in the Mahakam Working Area (WK): the Bekapai Artificial Lift (Bekapai AL) Project, the Peciko 8A Project, and the Peciko 8B Project.

The Bekapai AL Project involves the installation of a Gas Lift Compressor on the existing Bekapai BA platform, with gas-lift injected into wells on the existing Bekapai BG and BL platforms. Meanwhile, the Peciko 8A Project is a pilot project for PHM to produce oil and gas in Low Low Pressure (LLP) mode on the existing SWPG platform. Lastly, the Peciko 8B Project continues PHM’s efforts to increase gas and condensate production from the Peciko Field.

These three projects will contribute an additional gas production capacity of 36 MMSCFD and oil and condensate production of 16,000 BOPD. The peak production expected from these projects is 11.9 MMSCFD for gas and 2,025 BOPD for oil and condensate.

In support of the energy transition policy to gas, PHE, through its subsidiary PT Badak NGL, successfully implemented an innovation at the Bontang LNG Plant in East Kalimantan through the LPG Production Booster System (LPBS) program. This innovation enabled Badak LNG to reduce national LPG imports. Badak LNG successfully increased LPG production by 323% through the LPBS program.

In the Eastern Indonesia Region, Pertamina EP Donggi Matindok Field officially began drilling the Tedong (TDG)-001 exploration well as part of the Sulawesi Drilling Campaign of Pertamina’s Eastern Indonesia Regional Upstream Subholding. Drilling with the PT Pertamina Drilling Services Indonesia #32.2/N80UE (1000 HP) rig is targeted to reach a depth of 2,500 mSSTVD / 2,534 mMD over 67 days. The drilling campaign in the Eastern Indonesia Region, especially in Sulawesi, is an effort to support the development of new gas production centers.

Additionally, PHE completed a 3D Offshore seismic survey covering 821 square kilometers (km2) in the Bone area within 37 days and 700 km2 in Southeast (SE) Seram within 60 days, conducted by PT Elnusa Tbk in collaboration with China Oilfield Services Ltd.

PHE, through PT Pertamina International Exploration and Production (PIEP), PT Elnusa Tbk, and Pertamina Drilling Services Indonesia (PDSI), has also signed an MoU for joint overseas cooperation aimed at enhancing synergy and empowering upstream subsidiaries in international collaboration.

PIEP, the International Regional Office of Pertamina's Upstream Subholding, has expanded by opening a branch office in Dubai, United Arab Emirates, on July 2, 2024. The Dubai branch is PIEP's third overseas representative office. Previously, PIEP established PT Pertamina Algeria EP (PAEP) in Algeria and PT Pertamina Malaysia EP (PMEP) in Kuala Lumpur, both of which have been operational.

The Dubai branch office will serve as PIEP's vehicle for expansion and creating opportunities for acquiring new blocks in the Middle East. In the Middle East, Pertamina has been operating in Iraq through a 20% participating interest in the West Qurna 1 Block, contributing approximately 70% of PIEP's total production. The oil block is located in southern Iraq, near Basra city, 400 kilometers southeast of the capital Baghdad.

In early 2024, the Upstream Subholding, through PT Pertamina Malaysia Exploration Production (PMEP) and partners, won the SK510 exploration block auction through the 2023 Malaysia Bid Round (MBR). "Foreign investments support financial performance and company growth. We are grateful for all these achievements, and thank all stakeholders who consistently support the company's operations," said Corporate Secretary of PHE, Arya Dwi Paramita.

Vice President of Corporate Communication of PT Pertamina (Persero), Fadjar Djoko Santoso, added that the Upstream Subholding PHE continuously strives to increase oil and gas production to strengthen Pertamina's role in securing Indonesia's energy supply. PHE's oil and gas fields, including its overseas assets, are used to meet the needs of Pertamina's refineries in Indonesia. "As a national company, Pertamina is committed to safeguarding Indonesia's independence, including through national energy security," Fadjar added.

PHE remains committed to conducting business practices in line with sustainable investment trends and Environmental, Social, and Governance (ESG) principles, prioritizing safety. PHE commits to the Ten Universal Principles of the United Nations Global Compact (UNGC) in its strategy and operations as part of its ESG implementation. PHE has been registered as a UNGC participant (member) since June 2022.

Supporting Governance aspects, PHE is also committed to Zero Tolerance for Bribery by preventing fraud and maintaining the company clean from bribery. It includes implementing the Anti-Bribery Management System (SMAP) standardized under ISO 37001:2016.

PHE continues to develop prudent and excellent operations management domestically and internationally, striving to achieve recognition as a world-class oil and gas company with Environmentally Friendly, Socially Responsible, and Good Governance credentials.

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 & Governance (ESG) implementation across all Pertamina's business lines and operations.**