Successful in Winning the WK Melati Auction, Pertamina Shows Commitment to Support National Energy Security

Kuta Selatan, Bali, September 6, 2024 – PT Pertamina Hulu Energi (PHE), a subsidiary of Pertamina Upstream Subholding, has successfully won the Melati Work Area (WK) auction, along with consortium partners Sinopec International Energy Investment Holdings Limited and KUFPEC Regional Ventures (Indonesia) Limited. The announcement of the 2024 Phase I Oil and Gas Work Area Auction winners was made by Acting Director General of Oil and Gas (Migas), Dadan Kusdiana, during the 7th Indonesia-China Energy Forum (ICEF) in Bali on Tuesday (September 3, 2024).

The WK Melati, won by the PHE consortium, contributes significantly to the total investment in the 2024 Phase I Oil and Gas Work Area Auction, with a committed investment of USD 12,700,000 and a signature bonus of USD 200,000.

The WK Melati followed a Joint Study conducted by PHE with previous partners in 2023 until it was auctioned in May 2024, and the winner was announced in early September 2024. This work area is located offshore and onshore, covering an area of 8,453.7 km², with estimated resources of 850 million barrels of oil and 4.7 trillion cubic feet of gas, as indicated in the auction documents.

Chalid Said Salim, President Director of PHE, stated that the government’s assignment of WK Melati to the PHE consortium and its partners is a form of support from the government for Pertamina's ongoing efforts to develop domestic exploration potential. “We believe that the government’s trust in managing WK Melati, as well as previous exploration areas like WK West Ganal, WK Peri Mahakam, and WK Bunga, is a responsibility we must uphold to realize their potential fully to leverage advanced technology and excellent operations for Pertamina to continue increasing domestic oil and gas resources for national energy security. PHE is actively exploring opportunities in Eastern Indonesia and deepwater areas, and WK Melati represents a new frontier basin. If commercial reserves are proven, it could open new leads and prospects in the surrounding area, positioning Sulawesi as the next oil and gas hotspot,” Chalid explained.

In 2023, PHE contributed 68% of national oil and 33% of national gas production through optimal asset development. Acquiring exploration work areas is one of PHE’s key business strategies to maintain future oil and gas production rates and ensure national energy security. This strategy also strengthens Pertamina’s position as a leading domestic oil and gas producer while enhancing the company’s profitability to add value for the public and stakeholders.

Fadjar Djoko Santoso, VP of Corporate Communication of Pertamina, stated that Pertamina’s Upstream Subholding continues to increase upstream oil and gas production to support national energy security.

“We hope that when WK Melati becomes operational, it will help Pertamina boost national oil and gas production, ensuring energy security in Indonesia,” said Fadjar.

PHE remains committed to maintaining sustainable business practices in line with Environmental, Social, and Governance (ESG) principles, prioritizing safety in all operations. PHE adheres to the Ten Principles of the United Nations Global Compact (UNGC) in its strategy and operations, having been a UNGC member since June 2022.

In support of Governance, PHE is also committed to Zero Tolerance for Bribery by ensuring fraud prevention and maintaining a clean company free from corruption. One such measure includes implementing the ISO 37001:2016 Anti-Bribery Management System (SMAP).

PHE continues to develop prudent and excellent operational management domestically and internationally to become a world-class oil and gas company with a reputation for being environmentally friendly, socially responsible, and adhering to good governance practices.

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.**