Positive Impact of Transformation, Cost Optimization in Upstream Subholding Reaches 358 Million USD through OPTIMUS
Jakarta, October 21, 2021 – After completing the Legal Establishment of Pertamina Upstream Subholding, various transformation efforts are continued by Pertamina for the goal of becoming a world-class national energy company. One of the breakthrough steps was the OPTIMUS program, a cost optimization strategy through operational efficiency, implementation of appropriate technology, integration of procurement, and usage of shared facilities.
As of August 2021, 136 optimization programs have been successfully implemented in all Pertamina Upstream Subholding groups and are expected to meet the target of 190 programs by the end of 2021.
“We are grateful because as of August 2021, we were able to optimize the cost of 358 million USD. It already exceeded 115% of the 2021 cost optimization target of 310 million USD. This cost optimization was obtained from 136 programs done. One of these programs is MAXTER, or Optimization of Ex-Termination Field Materials. We can optimize drilling materials from ex-termination fields for operational purposes in other fields through this program. Until August 2021, MAXTER record cost optimization of up to 11 million USD,” explained John H. Simamora, Pertamina Upstream’s Director of Strategic Planning and Energy Business Development.
In addition, a cost optimization program is implemented in the Pertamina Hulu Mahakam field, namely Low Operations Cost of Mahakam to Achieve Effectiveness and Efficiencies (Locomotive-8), which is part of the OPTIMUS project. Some examples of the main initiatives that have been successfully implemented through the Locomotive-8 project are the optimization of Well Intervention activities and the utilization of ex-termination materials.
“The Well Intervention Locomotive-8 Optimization Program has been able to maintain the Mahakam Block oil and gas production level according to the company’s target by achieving lower operating costs to result in cost optimization of up to 5.2 million USD,” added John.
OPTIMUS has been implemented since January 2021. It aims to maintain the sustainability of operations, the ability to invest, and create profits in Pertamina Upstream Subholding.
“With this new organizational condition, Upstream Subholding continues to take breakthrough steps so that it can continue and grow in response to the dynamic challenges,” said John.
Furthermore, John added, “This is a positive achievement from the Holding - Subholding implementation. We have become a more agile, lean, and efficient organization in carrying out duties. Upstream Subholding still has a long way to go, and we need support from all related parties so that Pertamina’s transformation runs smoothly and we can contribute positively to the national target of 1 million BOPD and 12 MMSCFD by 2030.”