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PT Pertamina Hulu Energi continues to strengthen its commitment to maintaining national energy security by accelerating the development of oil and gas fields amidst global geopolitical dynamics and oil price volatility.
The commitment was conveyed by PHE's Director of Development and Production, Mery Luciawaty, in the international discussion forum Offshore Technology Conference (OTC) Asia 2026 in Kuala Lumpur, Malaysia, on Wednesday (1/4/2026), which raised the theme "Accelerating Development for Energy Security: Fast-Tracking Field Strategies in a Volatile World".
In her presentation, Mery emphasized that accelerating oil and gas field development is key to ensuring the sustainability of national oil and gas production while also addressing the increasing domestic energy needs.
"Amid global uncertainty, accelerating oil and gas field development is a strategic step to ensure national energy security and maintain a sustainable energy supply for the community and industry," said Mery.
"As Pertamina's Upstream Subholding, PHE currently manages 20 basins with a total production of approximately 1 million barrels of oil equivalent per day (MMBOEPD), contributing approximately 65% to national oil production and 36% to national gas production from 27% of domestic oil and gas working areas.
With this achievement, PHE faces several challenges for field development, namely a fairly high decline rate for oil at 24% and a decline rate for gas at 21% and asset integrity being a major challenge because 65% of PHE assets are over 30 years old. In addition, another challenge is PHE's operational costs are quite high because production at PHE is already in the late stage of development where in increasing production PHE carries out enhanced oil recovery (EOR) namely steamflood which requires support from reliable electricity, as well as chemical oil recovery activities which require higher costs than conventional drilling. Another challenge is related to the commercialization of stranded gas fields located in remote areas, so technologies such as GTL or mini LNG are needed to increase the economics of these assets.
To support increased production, PHE is implementing various key strategies, including accelerating project maturation, for example for exploration projects by involving the development team early in determining the development plan, as well as optimizing marginal field development through an integrated and cost-efficient approach.
PHE also continues to encourage the implementation of technological innovation for the development of deepwater fields, unconventional oil and gas, chemical enhanced oil recovery (CEOR), and the development of a carbon capture, utilization, and storage (CCUS) ecosystem as part of the company's long-term strategy," he added.
At the global level, PHE is also strengthening its international portfolio through its subsidiary PT Pertamina Internasional Eksplorasi dan Produksi (PIEP), which manages assets in Algeria, Iraq, and Malaysia, as well as its majority shareholding in Maurel & Prom, which has operations in Africa, the Americas, and Europe.
Through these various initiatives, PHE is optimistic that it can continue to improve operational performance while supporting the national energy self-sufficiency target.
"By strengthening organizational capabilities, strategic partnerships, and supporting competitive fiscal policies, PHE is committed to continuously optimizing national oil and gas development to support Indonesia's energy security," said Mery.
PHE will continue to invest in managing its upstream oil and gas operations and business in accordance with Environmental, Social, and Governance (ESG) principles. PHE also remains committed to Zero Tolerance on Bribery by ensuring fraud prevention and ensuring the company is free from bribery. One way to achieve this is through the implementation of an Anti-Bribery Management System (SMAP) standardized to ISO 37001:2016.
Note: This story has not been edited by The Polymerupdate Editorial team and is auto-generated from a syndicated feed.
