PT Pertamina EP, an oil and gas producer under PT Pertamina, has completed SP Bambu Besar and SKG Betung projects and will increases oil production by 2,738 barrels oil per day and gas 15.52 million standard cubic feed per day = Photo by the Company

JAKARTA (TheInsiderStories) – PT Pertamina EP, an oil and gas producer under PT Pertamina, has completed SP Bambu Besar and SKG Betung projects in this month. The two blocks its expecting will increases oil production by 2,738 barrels oil per day (bpd) and gas 15.52 million standard cubic feed per day (MMscfd).

Other unit, PT Pertamina Hulu Energi West Madura Offshore, a subsidiary of PT Pertamina Hulu Energi (PHE), has reactivate the PHE-12 platform located in the shoreline of Bangkalan Regency, Madura, East Java Province. The platform, which consists of PHE-12 A1 and PHE-12 A3, was started up on Nov. 16 for well A1 and Nov. 24 for well A3.

Based on the official statement, the SP Bambu Besar adding 2,738 bpd and gas of 5.52 MMscfd. The project was originally targeted to be onstream in 2021. The completion of the gas facility is important in an effort to maintain gas supply to the domestic industry in West Java.

While, SKG Betung was able to maintain gas production of 10 MMscfd and has flowed the gas on Nov.15 via the Southern Sumatra pipeline network which is connected to industries in Sumatra and Java.

On the PHE West Madura Offshore project, PHE director, Taufik Aditiyawarman, said is expected to increase oil and gas production by 1,000 bpd. This series of reactivation activities for the PHE-12 platform began on Feb. 21, 2020 and has done on Nov. 7.

Perusahaan Gas Negara

In other statement, PT Perusahaan Gas Negara Tbk (IDX: PGAS) as subholding gas under Pertamina, reported booked a revenues of US$2.15 billion in nine months (9M) of 2020 of 2020, mostly derived from the gas sales. An Operating profit sttod at $315.49 million, EBITDA of $601.91 million, and net profit amounted to $53.3 million.

During January – September, the issuer has distributed natural gas of 812 billion british thermal unit per day (BBTUD), transmission volume of 1,276 MMScfd, oil and gas lifting of 5,260 MBOE, oil transportation of 2,780 MBOE, processing of LPG of 34,206 tones, and regassification of 93 BBTUD.

Finance Director, Arie Nobelta Kaban, stated, “The triple shock has affected PGAS’ business, especially demand for natural gas, and the upstream sector depend on the oil, gas, and LNG prices.”

As the group, Pertamina‘ financial resulted has hit by the pandemic. The company posted a net loss$767.91 million in the first semester (1H) of 2020, hit by a triple shocks like the drop in the crude oil prices, the decline in domestic fuel consumption, and the movement of US Dollar. In the same period of 2019, the state-owned oil and gas producer posted a net profit of $659.96 million.

It also reported, the state-owned firm’ revenues dropped from $25.55 billion to $20.48 billion. In addition, upstream production costs and lifting also increased from $2.38 billion in the 1H of 2019 to $2.43 billion in 1H of 2020.

Domestic sales of Pertamina‘ fell from $20.94 billion to $16.56 billion until June. The decline in sales was also due to the decline in the subsidies from the government, from $2.51 billion to $1.74 billion. But, export sales increased from $1.61 billion to $1.76 billion.

The management said, until June 2020, the domestic crude oil demand was only around 117 thousand kilo liters (KL) per day, dropped by 13 percent compared to the same period in 2019, which was recorded at 135 thousand KL per day.

In total, the oil and gas holding’ production for both domestic and international assets around 884,100 bpd. The producer data also showed that domestic fuel consumption has reached 114,000 KL per day, which are gasoline consumption is 78,820 KL per day and diesel 34,990 KL per day.

To help the company financial performances, state own enterprises minister, Erick Thohir, was revitalized the businesses structure by set up a sub-holding under the company. There are five sub-holdings that have been formed, namely Upstream lead by PHE, gas managed by Perusahaan Gas Negara, power & NRE under PT Pertamina Power Indonesia, commercial & trading managed by PT Patra Niaga, and refinery & petrochemical lead by PT Pertamina International Refinery.

In addition, there is also a shipping company whose operations are handed over to PT Pertamina International Shipping. According to the CEO, Nicke Widyawati, the formation is a strategic step for Pertamina.

US$1: Rp14,100

Written by Editorial Staff, Email: theinsiderstories@gmail.com