Board of Directors Report
Pertamina’s 60th anniversary is the right momentum for a deep reflection, while mapping strength, weakness and challenges ahead, in order to ensure business continuity and continue to move forward towards the next stage in achieving world-class vision.
Strategy and Initiatives
In 2017, Pertamina signed a contract with Indonesia government on Offshore North West Java (ONWJ) block operatorship. It’s the first contract signed with gross split scheme in the country, Governemnt of Indonesia also appointed Pertamina to manage the Mahakam Block effective starting on January 1, 2018.
Despite the many challenges and obstacles, especially the geographical conditions that are quite difficult to penetrate, until the end of 2017 Pertamina has managed to realize the operation of One Price Policy channeling agencies in 54 locations, as targeted for 2017.
2017 Performance
Financial. In 2017, Pertamina posted USD 42.96 billion in sales and revenues, up 17.7% from USD 36.49 billion recorded in 2016.
Upstream Sector. 2017’s crude oil production increased by 9.4% yoy to 124.72 MMBO. While natural gas production increased by 3.5% yoy to 742.91 BSCF.
Meanwhile, production of electricity equivalent geothermal (own operation) reached 3,900.23 Giga Watt hour (GWh), up 28.2% compared to production in 2016.
Gas and New and Renewable Energy Sector. LNG sales reached 710.5 MMBTU, . Meanwhile, Commercial Gas recorded sales of 46.8 thousand BBTU
Pipeline projects completed in 2017 include the 3.6-km open access looping Gresik-PT Petrokimia Gresik (PKG) pipeline and the 8-km Semare open access pipeline in East Java.
Refinery Sector. The yield on total refinery output reached 94.69%, slightly higher than 2016’s number.
The yield on valuable refinery product was recorded at 78.13%, higher than 77.67% recorded in 2016
In 2017, the Refinery Unit IV Cilacap began to produce the Pertamax High Quality, a fuel product with maximum sulfur content of 50 ppm.
Marketing Sector. Throughout 2017, sales of oil fuel products (BBM) amounted to 69.3 million KL, up 3.6% from 66.9 million KL in 2016, and 99.0% of the target at 70.0 million KL.. Sales of Non-BBM product reached 16.5 million KL, up 7.8% from 15.3 million KL in 2016 and 101.2% of the target at 16.3 million KL.
In the LPG sector, Pertamina expanded the penetration of Bright Gas product through an LPG container trade-in program specifically for the Bright Gas brand.
In petrochemical product sales segment, Pertamina successfully increased sales by 30% compared to 2016