Strengthening Drilling Mud Business, Pertamina International Refinery Unit Dumai Produces SF 05

Jakarta, May 23, 2024 - PT Kilang Pertamina Internasional (KPI) has expanded its production of drilling mud, known as Smooth Fluid. It was reinforced with the Smooth Fluid 05 (SF-05) product launch at the KPI Dumai Unit.

The launch took place at the jetty area and was officially marked by the symbolic handover of SF-05 samples and the Certificate of Quality (COQ) to the Project Sales Manager of PT Pertamina Lubricants (PTPL), Wahyu Pratiwi W, and the Captain of MT. Tameda Maru 3, Captain Nazar. Subsequently, the first shipment of 7,000 barrels was made to be used in the PT Pertamina Hulu Mahakam (PHM) drilling operations.

Corporate Secretary of KPI, Hermansyah Y Nasroen, explained that SF-05 has been produced by the Balikpapan Refinery. "SF-05 was first produced at the Balikpapan Refinery in 2007, and it has become one of KPI's flagship products. Now, the Dumai Refinery can produce a similar product," said Hermansyah.

The success of the Dumai Refinery in producing SF-05, Hermansyah continued, demonstrates KPI's ability and capability to integrate its business processes. "With two units capable of producing SF-05, further the certainty of this product's supply will be more assured. And this will ensure the availability of the product," Hermansyah stated.

The success of the Dumai Refinery in producing SF-05 was recently marked by the first shipment of 7,000 barrels using MT Tameda Maru 3 a few days ago.

The Dumai Refinery previously also had a drilling mud product known as SF-02. This product has slightly different characteristics from SF-05.

Unlike the previous SF-02 product, which excels in offshore drilling activities, SF-05 is superior for onshore exploration activities with the advantages of low impurities.

"The characteristics of SF-05 include high local content, good safety for drilling equipment, safety in swamp areas, and great stability for long-term storage. With excellent lubrication properties, this product is suitable for high-temperature and high-pressure drilling and is environmentally friendly," explained Hermansyah.

SF-05 itself has become a market leader in drilling mud products. It is evident from its increasing production year after year. In 2022, SF-05 production reached 140,000 barrels, an increase of 23% from the previous year's production of 113,500 barrels. In 2023, SF-05 production soared to around 210,000 barrels.

"With the quality of SF-05, we are confident that KPI can become an important supply chain link in supporting upstream oil and gas activities in Indonesia," Hermansyah affirmed.

Vice President of Corporate Communication of Pertamina, Fadjar Djoko Santoso, stated that Pertamina encourages innovations, particularly from the Refinery Unit (RU), to differentiate products and pursue business support revenue opportunities.

"Product innovation is a key element in Pertamina's future business development," said Fadjar.

PT Kilang Pertamina Internasional is a subsidiary of PT Pertamina (Persero) that operates in the oil and petrochemical processing business following the principles of ESG (Environmental, Social & Governance). KPI is also listed in the United Nations Global Compact (UNGC) and is committed to the Ten Universal Principles of the UNGC in its operational strategy in implementing the ESG aspects. KPI will continue to conduct its business professionally to realize its vision of becoming a world-class Oil and Petrochemical Refinery Company that is environmentally conscious, socially responsible, and has good corporate governance.

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

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