Jakarta- PT Pertamina Hulu Indonesia (PHI), through its subsidiaries and affiliates in Zona 9 of Pertamina's Upstream Subholding, namely PT Pertamina EP (PEP) Tanjung Field, PEP Sangasanga Field, and PEP Sangatta Field, has officially signed the second amendment to the A/R Principles for East Kalimantan (Eastkal) System Reform. The signing was carried out at the 15th Plenary Meeting of the East Kalimantan Gas Management Committee (EKGMC) in Jakarta on July 27, 2024, which was attended by the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) and the Cooperation Contractors (KKKS) who are members of the Eastkal System.

Through this signing, PEP's Working Area (WK) Sangasanga and Sangatta Fields are officially included in the Eastkal System, following other PHI Group members who have previously joined, namely PT Pertamina Hulu Mahakam (PHM), PT Pertamina Hulu Sanga Sanga (PHSS), and PT Pertamina Hulu East Kalimantan (PHKT). This moment is a new milestone for the Company to develop the potential of natural gas resources in the Sangasanga and Sangatta Fields.

PHI President Director Sunaryanto explained that the entry of PEP Sangasanga and Sangatta Fields into the Eastkal System will open access to gas commercialization from the two fields to domestic gas buyers in the East Kalimantan system gas network. This can increase the development potential of Sangasanga and Sangatta Fields to be more economical and contribute to fulfilling domestic gas needs. "The development of natural gas is in line with the Company's efforts to support Pertamina's energy transition policy and the achievement of the national production target of 1 million barrels of oil and 12 billion standard cubic feet of gas by 2030," said Anto, Sunaryanto's nickname.

The Eastkal System is an integrated system consisting of gas producers, pipeline gas buyers, transporters, and the Bontang LNG Plant. In this system, gas produced by gas producers in East Kalimantan is channeled to pipeline gas buyers and the Bontang LNG Plant to be processed into LNG, LPG, and Bontang Return Condensate.

Deputy Head of SKK Migas and Chairperson of EKGMC, Shinta Damayanti, stated that the EKGMC meeting aims to support the Indonesian government's program in developing the potential of natural gas resources in East Kalimantan to fulfill national energy. "SKK Migas hopes that KKKS in East Kalimantan will continue to make various breakthrough efforts so that upstream oil and gas contributes greatly to the community. We also continue to encourage increased production in East Kalimantan and a more significant contribution through production optimization and increased exploration to find new reserves," said Shinta.

VP Development and Drilling Regional 3 Reza Rinaldi Zein said that the borderless and regionalization strategy has proven to be a new milestone for the WK managed by Pertamina EP, especially the Asset 5 area (Tanjung, Sangasanga, Sangatta). The strategy has succeeded in opening up the gas potential of these fields to become more commercial and increase the enthusiasm of the PHI Group to provide the best results for the country and the Company.

On the same occasion, Pjs. General Manager Zona 9 Susan Syandina revealed that this opportunity will be supported by gas development in other structures in the Sangasanga and Sangatta areas. Thus, the Long Term Plan (LTP) profile of the Sangasanga and Sangatta Fields gas inlet can continue to grow. "The joining of the Company in the Eastkal System is a strategic step to grow the economics of the Company's oil and gas projects so that it can generate significant value for all stakeholders," he added. Ultimately, this step also supports the creation of a better energy mix and decarbonization with maximum gas monetization.

PT Pertamina Hulu Indonesia (PHI) is part of Pertamina's Upstream Subholding, which manages upstream oil and gas operations and business by Environmental, Social, and Governance (ESG) principles in Regional 3 Kalimantan. In 2023, through its subsidiaries and affiliates collaborating with SKK Migas, PHI recorded 62.17 thousand barrels of oil per day (MBOPD) and gas production of 710 million standard cubic feet of gas per day (MMSCFD). In achieving its vision of becoming a world-class oil and gas company, PHI continues making various innovations and technology applications to produce safe, efficient, reliable, compliant, and environmentally friendly energy to support #EnergiKalimantanUntukIndonesia. PHI's headquarters is in Jakarta. More information about PHI is available at https://phi.pertamina.com.