Supporting Energy Resilience, PHE Records Optimal Performance in 2023

Jakarta, February 7, 2024 – PT Pertamina Hulu Energi (PHE), as a Subholding Upstream of Pertamina, continues demonstrating outstanding performance throughout 2023. PHE recorded oil production of 566 thousand barrels per day (MBOPD) and gas production of 2.766 million standard cubic feet per day (MMSCFD), resulting in a total hydrocarbon production of 1.044 thousand barrels of oil equivalent per day (MBOEPD). These achievements also mark a 27.22% increase in oil production from 2021 or a 10.12% increase from 2022 and a 5.77% increase in gas production from 2021 or a 5.40% increase from 2022. All these accomplishments are supported by all PHE affiliate entities, namely the Sumatra region, Java region, Kalimantan region, Eastern Indonesia region, International region, Elnusa, Badak LNG, and Pertamina Drilling Service Indonesia.

PHE also recorded performance in completing 20 exploration wells, 799 development wells, 835 workovers, and 32,589 wells services. Additionally, PHE conducted a 3D seismic survey covering 1,512 km2.

"PHE will continue to commit to achieving optimal performance and further increasing national contributions," explained the Corporate Secretary of PHE, Arya Dwi Paramita.

In the exploration field, PHE achieved a total 2C resource discovery of 488 MMBOE (Million Barrels of Oil Equivalent), or 68% exceeding the target. Over the past two years, PHE has made significant discoveries through exploration activities in existing blocks, including exploration discoveries in R-2 (Offshore Aceh), Wilela (South Sumatra), GQX-1 (Offshore West Java), East Akasia Cinta-001 (West Java), East Pondok Aren-001 (West Java), Manpatu 1-X (Kalimantan), and Wolai Complex (Sulawesi).

The success achieved through exploration activities in these mature existing block areas is also one of the strategies to optimize assets and maintain the pace of hydrocarbon production.

PHE also pursued other approaches, including seeking opportunities through exploration outside existing areas, merging, or frontier areas. In 2023, PHE obtained exploration working areas with the majority of gas resources in the Mahakam & Bunga area located in eastern Indonesia, East Natuna in the border area of Indonesia-Malaysia-Vietnam, and the national strategic project of Masela.

PHE also implemented various strategies to increase production, including adding a 10% Participating Interest in Iraq and extending the MLN contract in Algeria. All strategies aim to maintain domestic upstream oil and gas sustainability and enhance PHE's performance on the international stage.

To date, PHE has successfully completed one of the strategic projects for drilling Non-Conventional Oil and Gas Wells (MNK) located in the Gulamo Field, Tanah Putih District, Rokan Hilir Regency, Riau, in late July 2023. PHE also implemented Carbon Capture Utilization and Storage (CCUS) technology in the Pertamina EP Sukowati Bojonegoro Field, East Java, marked by the inauguration of the first CO2 injection into the Sukowati Field using the Huff & Puff method.

"This outstanding performance is proven by PHE receiving numerous accolades, including 30 national and four international awards," Arya added.

PHE received international recognition in the social field, including awards at The 15th Annual Global CSR & ESG Summit & Awards 2023 in Vietnam and the Great Practice Award 2023 from the Global Corporate Sustainability Award (GCSA) in Taipei. Besides that, PHE won four awards in the innovation field at the Taiwan Innotech Expo (TIE) 2023.

In the Environmental, Social, and Governance (ESG) field, PHE achieved a rating of 21.5, representing a medium risk after undergoing assessment by Sustainalytics, an international rating agency. PHE ranked eighth out of 315 oil and gas producers globally. PHE will continue to invest in managing upstream oil and gas operations according to ESG principles and has been registered with the United Nations Global Compact (UNGC) as a member since June 2022.

PHE is committed to the Ten Universal Principles or Ten Principles of the UNGC in its strategy and operations as part of the ESG aspects implementation. Supporting the Governance aspect, PHE also maintains a Zero Tolerance Bribery commitment by ensuring fraud prevention and keeping the company free from bribery. One of these measures includes implementing an Anti-Bribery Management System (SMAP) standardized to ISO 37001:2016.

PHE continues to develop prudent and excellent operational management both domestically and internationally in a professional manner to become a world-class oil and gas company that is Environmentally Friendly, Socially Responsible, and Good Governance.

Vice President of Corporate Communication of Pertamina, Fadjar Djoko Santoso, stated that Pertamina is committed to increasing oil and gas production while undertaking decarbonization and energy transition to maintain national energy resilience and independence.

"Pertamina will continue to improve its operational performance across all Subholdings and Subsidiaries to support the government's target of reaching 1 million barrels per day while achieving NZE by 2060 or earlier," said Fadjar.

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.**