Balikpapan– PT Pertamina Hulu Mahakam (PHM), a subsidiary of PT Pertamina Hulu Indonesia (PHI), inaugurated the operations of its Diesel Dual Fuel (DDF) prototype Crewboat on Monday, August 12, 2024. The DDF represents PHM's breakthrough in implementing eco-friendly technology by converting the crew boat's diesel engine to Diesel Dual Fuel, which combines the use of gas (LNG) and diesel. This innovation in maritime transport operations within the upstream oil and gas industry is the first of its kind in Indonesia.

The inauguration was conducted by the Minister of Energy and Mineral Resources, Arifin Tasrif, and attended by the Minister of Transportation of the Republic of Indonesia/ Menteri Perhubungan Republik Indonesia, Budi Karya Sumadi, SKK Migas Head, Dwi Soetjipto, PHI and PHM management, along with other guests.

Minister Arifin Tasrif praised PHM's initiative in supporting the government's program to reduce emissions in line with the Net Zero Emission (NZE) target for 2060 or sooner. "The inauguration of this DDF prototype Crewboat is a tangible example of the active participation of Indonesian oil and gas companies, which can provide significant benefits to PHM and the general public," he stated.

Meanwhile, Minister of Transportation Budi Karya Sumadi noted that efforts to apply energy efficiency through green shipping align with IMO regulations and should be supported to mitigate the use of environmentally friendly navigation tools and the obligation to report fuel usage in Indonesia. "This is expected not just to be an initiative but to be effectively implemented. The DDF represents a strategy and commitment, significantly contributing to carbon emission reduction," he added.

PHM General Manager Setyo Sapto Edi mentioned that the implementation of DDF conversion technology is a demonstration of the company's commitment to conducting efficient and environmentally friendly oil and gas operations. PHM's conversion from diesel to Diesel Dual Fuel aims to improve the company's long-term performance in environmental aspects while also saving costs. With a potential reduction of diesel use by up to 60% in favor of LNG, we see this program as very beneficial for our operational cost efficiency," Setyo explained.

According to Setyo, rising fuel prices, high maritime fleet operational costs, and significant diesel consumption prompted PHM to pursue efficiency by combining gas (LNG) and diesel for crew boat operations. "PHM supports energy diversification policies by adhering to International Maritime Organization (IMO) regulations. This project promotes the use of natural gas to foster environmental awareness towards clean energy," he noted.

Additionally, PHI President Director Sunaryanto highlighted that the sustainability of the company's oil and gas operations plays a crucial role in supporting the national energy supply and Indonesia's economic development. "Diesel Dual Fuel is a significant breakthrough for optimizing operational costs, especially fuel use for crew boats, supporting environmentally friendly operations, and government energy diversification policies. Furthermore, it aligns with PT Pertamina (Persero) 's strategy regarding energy transition and carbon emission reduction," Sunaryanto explained.

SKK Migas Head Dwi Soetjipto expressed appreciation for PHM's successful fuel conversion. He stated that the diesel dual fuel crew boat breakthrough is crucial as it integrates the use of LNG during the ongoing energy transition. This step aligns with the Indonesia Oil & Gas (IOG) 4.0 strategic plan, which focuses on maintaining environmental sustainability and implementing the Low Carbon Initiative (LCI) program.

"Besides its positive impact on the environment, LNG usage will offer cost efficiency for PHM, and if adopted by other KKKS, it will enhance operational efficiency in the upstream oil and gas industry and become a breakthrough that encourages the use of gas over oil domestically," Dwi added.

PT Pertamina Hulu Mahakam (PHM), a subsidiary of PT Pertamina Hulu Indonesia (PHI), manages upstream oil and gas operations and business in accordance with Environmental, Social, and Governance (ESG) principles within the Mahakam Working Area in East Kalimantan. In collaboration with SKK Migas, PHM, and other PHI subsidiaries and affiliates, continuously pursue various innovations and technology applications to produce safe, efficient, reliable, compliant, and environmentally friendly energy to support #EnergiKalimantanUntukIndonesia. For more information about PHI, visit https://phi.pertamina.com.