JAKARTA (TheInsiderStories) – Indonesian oil and gas holding, PT Pertamina budgeted investment funds worth of US$1.9 billion for the exploration and development of 98 Upstream Oil and Gas projects in 2019, said a senior officer last week.
In an official statement, director for upstream Dharmawan Samsu, said that the investment constitutes 45 percent of this year investment funds in the Company’ Work Plan and Budget, which reached $4.2 billion.
He asserted that the entire project was carried out by the company’ upstream oil and gas unit operating in Indonesia. The project consisted of 47 projects carried out by PT Pertamina EP, 29 projects by PT Pertamina Hulu Energi, 19 projects by PT Pertamina Hulu Indonesia, two projects by PT Pertamina EP Cepu, and one project by PT Pertamina EP Cepu Alas Dara Kemuning.
“These projects are important considering their role in maintaining upstream revenue generators now,” he said.
Samsu stressed that in 2019, Pertamina planned to complete 311 exploration and exploitation drilling wells in Indonesia, of which around 38 percent are in the Mahakam Working Area.
As of April, Pertamina has completed drilling of 77 wells in the country, consisting of 72 exploitation wells and 5 exploration wells in the existing Working Area.
In addition, as part of efforts to stifle the natural decline in production, Pertamina also carried out work over and well intervention programs and predictive maintenance that could reduce the potential for unplanned shutdown.
Samsu provides three things that need to be considered related to the management of oil and gas fields in Indonesia. First, the underground maturity level in oil and gas fields managed by Pertamina.
Second, the condition of production facilities in the upstream field is also a consideration. Finally, in order to answer the need for increased production, efforts to increase reserves and production are needed for the long term.
Pertamina aimed to increase refinery capacity to 2 million barrels per day on the modernization and construction of the company’ Refinery Development Master Plan (RDMP) and Grass Root Refinery (GRR). This figure has doubled from the current capacity of 1 million barrels per day.
To reach the world-class standard, Pertamina aimed to increase refinery capacity through the construction of four RDMPs and two GRRs as well as integrating them into petrochemical plants to develop new businesses with the support of reliable human resources, the latest world-class technology, he adds.
RDMP and GRR megaproject, its expecting will simultaneously increase the ability to process crude from sweet crude to sour crude with a sulfur content of around 2 percent. In addition, increasing Yield of Valuable to around 95 percent from the previous 75 percent.
The refinery will produce environmentally friendly fuel products of the Euro5 standard and Petrochemical products ranging from 6,600 Kilotonnes Per Annum (KTPA) from the previous 600 KTPA so that it can significantly reduce imports of petrochemical products.
With the presence of these two large projects, he hopes to be able to increase oil production so that 100 percent meet national energy needs and support the growth of the petrochemical industry and strengthen Pertamina’s downstream business.
Written by Daniel Deha, Email: email@example.com