Oil and Gas Industry Affected by Covid 19, Pertamina Continue to Pursuit Operation Target
Jakarta, September 1, 2020 – Amid the Covid 19 pandemic towards the oil and gas industry, PT Pertamina (Persero), through its subsidiary, continues to focus on achieving oil and gas operation and production to maintain the national oil and gas ecosystem while contributing for the country.
In the upstream, despite the huge challenge, until July 2020, Pertamina Groups' oil and gas production, both domestic and international assets, still reach 98 percent or 875 MBOEPD (thousand barrels of oil equivalent per day). The details are crude oil production of 410 MBOPD (thousand barrels of oil per day) and natural gas production of 2.692 MMSCFD (million feet cubic per day).
Vice President of Corporate Communication of Pertamina, Fajriyah Usman, explained that the global upstream oil and gas industry experience a huge impact during the Covid 19 pandemic. Decreasing in activities outside of homes (lockdown) that occurred in almost all countries resulted in a reduction in fuel demand. At that time, there was an abundant supply of both fuel and crude oil. Therefore, the price of crude oil plummeted to the lowest level.
"Due to the impact of Covid 19, oil and gas companies continue to strive to maintain the production performance, which Pertamina has also projected. However, the continuation of operation must be followed by various adjustments, both adjustments to Covid 19 protocol and operational aspects. As a state company that is in charge of managing national energy, Pertamina, along with its upstream subsidiaries, move to achieve production target to maintain the sustainability of the national oil and gas industry," she said.
"Until July 2020, even though we are in a condition that forces us to optimize cost and efficiency, in general, Pertamina's upstream performance (domestic and international) continues to run well by completing 8 exploration wells, 182 exploitation wells, and 362 workover works. Therefore, we will continue to do our best to achieve the oil and gas production target," she added.
Apart from exploitation, Pertamina continues to intensify exploration activities. It is shown from PEP's ability to receive the best achievements with the discovery of new oil and gas resources in the West Java Depression, specifically in the Akasia Prima-1 (AKP-1) and the Wolai-002 well in Central Sulawesi.
Fajriyah added, even though Pertamina is facing a triple shock due to the Covid 19 pandemic, Pertamina is also optimistic about carrying out the mandate of moving the economy and avoid layoffs. The effort is shown by continuing to operate the upstream work area and other strategic projects, such as Balikpapan RDMP Project, Aromatic TPPI Project, Jambaran Tiung Biru Project, and PLTG Jawa-1 Project. All activities in the downstream and distribution also continue to run well.
"There are 1.2 million workers, who are directly related to all Pertamina's business which are to remain employed and are not a subject to termination of employment (PHK)" she concluded.**