Enviro News Asia, Kuala Lumpur — PT Pertamina Hulu Energi (PHE) reaffirmed its commitment to strengthening Indonesia’s energy security by accelerating the development of oil and gas fields amid global geopolitical uncertainty and oil price volatility. The statement was delivered during the Offshore Technology Conference Asia 2026 held in Kuala Lumpur, Malaysia, on April 1, 2026.
Mery Luciawaty emphasized that fast-tracking oil and gas field development is essential to sustain national production and meet rising domestic energy demand. She stated that accelerating field development is a strategic response to global uncertainty while ensuring stable energy supply for both industry and the public.
As Pertamina’s upstream subholding, PHE currently manages 20 basins with total production of approximately 1 million barrels of oil equivalent per day (MMBOEPD). This accounts for around 65 percent of Indonesia’s oil production and 36 percent of its gas output, covering 27 percent of the country’s working areas.
Despite these achievements, PHE faces several challenges, including high natural decline rates—24 percent for oil and 21 percent for gas—as well as aging infrastructure, with 65 percent of its assets exceeding 30 years in operation. The company also faces higher operational costs due to late-stage production, which requires enhanced oil recovery (EOR) methods such as steamflooding and chemical injection.
Additional challenges include the commercialization of stranded gas fields located in remote areas, which require advanced technologies such as gas-to-liquids (GTL) and mini liquefied natural gas (LNG) to improve economic viability.
To address these challenges, PHE is implementing key strategies, including accelerating project maturation by involving development teams early in exploration planning and optimizing marginal field development through integrated and cost-efficient approaches.
The company is also advancing technological innovation in deepwater development, unconventional oil and gas, chemical enhanced oil recovery (CEOR), and the development of Carbon Capture Utilization and Storage as part of its long-term strategy.
At the global level, PHE continues to strengthen its international portfolio through PT Pertamina Internasional Eksplorasi dan Produksi, which manages assets in Algeria, Iraq, and Malaysia, as well as its majority stake in Maurel & Prom, with operations across Africa, the Americas, and Europe.
Through these initiatives, PHE aims to enhance operational performance and contribute to Indonesia’s energy self-sufficiency targets. Mery stated that strengthening organizational capabilities, strategic partnerships, and supportive fiscal policies will be key to optimizing national oil and gas development.
PHE also reaffirmed its commitment to Environmental, Social, and Governance (ESG) principles, including a zero-tolerance policy on bribery. The company has implemented an Anti-Bribery Management System aligned with ISO 37001:2016 standards to ensure transparency and integrity in its operations. (*)
