Supporting Holding's Target, Pertamina's Subholding Contributes to Reducing CO2 Emissions

Jakarta, December 8, 2021 – PT Pertamina (Persero) encourages all subsidiaries or Subholdings to reduce greenhouse gas emissions.

The Pertamina Gas Subholding under PT Perusahaan Gas Negara (PGN) Tbk has a significant role in the energy transition and decarbonization program by contributing to greenhouse gas emissions reduction by up to 6 million tons of carbon dioxide equivalent (C02e). This figure comes from natural gas utilization for power plants of 1,100 BBTUD or the equivalent of 5,600 MW.

President Director of PGN, M Haryo Yunianto, during the 2021 Pertamina Energy Webinar in Jakarta, Tuesday (7/12/2021) said his party is committed to providing clean energy, namely natural gas, for the people of Indonesia.

"In the future, we will continue to increase our role to support the government in the energy transition process and decarbonization program," he said.

According to him, Pertamina Gas Subholding will start converting 52 oil-fueled power plants in central and eastern Indonesia with liquefied natural gas (LNG) in 2022. PGN has also planned to add infrastructure to increase the use of clean gas energy by 2022. Namely, the construction of a distribution pipeline of 32,509 km, a transmission pipeline of 83 km, and the addition of one million household connections for city gas customers.

According to Haryo, his party will cooperate with PT KAI (Persero) to use the train station for LNG regasification. It will distribute the gas to households by pipes. PGN will also build large-scale LNG regasification in Cilacap and Teluk Lamong to support the program.

Meanwhile, the Director of Planning and Business Development of PT Pertamina International (KPI), Joko Widi Wijayanto, said as a Refinery and Petrochemical Subholding, his party has three energy transition schemes. It includes co-processing, conversion, and alternatives. Co-processing is RBDPO mixed with fossil raw materials for co-processing in existing refineries. CPO raw materials for conversion are processed entirely in existing revamped/modified refineries. Meanwhile, the alternative scheme is alternative renewable sources utilization, such as used cooking oil, microalgae, and green methanol.

Meanwhile, Jaffee Arizon Suardin, President Director of PT Pertamina Hulu Rokan (PHR), stated that oil would play an essential role in the energy transition.

"In this energy transition, oil is still needed. Therefore, we continue to make efforts to increase production," he said.

According to Jaffee, since management transferred to Pertamina in August 2021, the production of the Rokan Block has continued to increase. In August, the average production reached 158,000-159,000 barrels per day, and the position in November had increased to 162,000 barrels per day.

"This means that we are not only able to withstand the natural decline, but we can increase production," he said.

According to Jaffee, the drilling activity in 2021 has exceeded the set target. From the initial plan to drill 44 wells to date, 114 wells have been realized, then for drilling rigs from the planned nine rigs, 17 rigs have been achieved, and WOWS rigs from 25 have been realized 29 rigs.

"This year, we managed to drill one well every day with a 10 percent more efficient cost," he said.

Furthermore, for next year his party will be more aggressive in drilling. In 2022, PHR plans to drill 500 wells, 20 drilling rigs, and 40 WOWS rigs to achieve an average production of 180 thousand barrels per day.

Jaffee added that his party would continue to carry out steam flooding and chemical enhanced oil recovery (CEOR) to increase production in the Rokan Block. On the other hand, his party also plans to utilize a solar power plant (PLTS) in the Rokan Block to support the energy transition.

"We are committed to continuing to increase production and investment so that it will have an impact on Riau Province and its people," he said.

The performance and contribution of the three Pertamina Subholdings in reducing emissions was presented at the Pertamina Energy Webinar with the theme "Energizing Your Future." The webinar was attended by Minister of Finance Sri Mulyani Indrawati, Secretary-General of the Ministry of Energy and Mineral Resources Ego Syahrial, Directors of Pertamina Group, and external speakers Jonathon Smith (Sustainalytics) and Stephen Jones (Development Planner ExxonMobil).**