Jakarta – PT Pertamina Hulu Indonesia (PHI) welcomes and supports the implementation of oil and gas Working Area development plan based on Indonesian government’s incentives disbursed by the Ministry of Energy and Mineral Resources to its subsidiaries, PT Pertamina Hulu Mahakam (PHM), PT Pertamina Hulu Sanga Sanga (PHSS), and PT Pertamina Hulu Kalimantan Timur (PHKT).

Previously, PHM, PHSS and PHKT applied for incentives to the Indonesian government through the Special Task Force for the Upstream Oil and Gas Business Activities (SKK Migas) as a strategic move to ensure oil and gas investment and economic continuity in the Mahakam, Sanga Sanga and East Kalimantan & Attaka Blocks to achieve Indonesia’s oil and gas production target. PHM and PHSS’ incentive applications were approved on March and December 2021, respectively, while PHKT’s incentive application was approved on January 2022.

PHI President Director Chalid Said Salim explained that the government’s incentives and facilities were important in ensuring the investment continuity and achieve Indonesia’s oil and gas production target in 2030.

Chalid said that the government’s incentives for PHM, PHSS and PHKT are expected to encourage higher oil and gas investment of up to US$9 billion or IDR 129 trillion. The investment is mainly needed for exploration activities and oil and gas fields development to discover new resources and increase oil and gas reserves that are important for national energy security.

“With the incentives approvals, PHM, PHSS and PHKT are targeting 194 well drillings in 2022, much higher than the year before. As of the first quarter of this year, PHI drilled an exploration well and 29 development/exploitation wells,” he said.

Chalid also added that the incentive would support PHI’s success in restraining the high rate of decline in natural production and maintain production level in mature oil and gas fields.

“Other than to support the increase of reserves and improve oil and gas production rates from exploration and exploitation drillings, the incentives will support the Company’s investment continuity and create multiple impact to the regional economic development, job availability, local business growth, community development and government revenue,” he said.

PT Pertamina Hulu Indonesia (PHI) is part of Pertamina’s Upstream Subholding that manages upstream oil and gas operations and business according to the Environment, Social and Governance (ESG) principles in Kalimantan Regional 3. In 2021, through its subsidiaries and affiliates, PHI produced an average of 46.5 thousand barrels of oil per day (MBOPD) and 625.2 million standard cubic feet of gas per day (MMSCFD). To achieve its vision to be a world-class oil and gas company, PHI continues to conduct various innovations and technological application to produce safe, efficient, reliable, compliant and environmentally friendly energy to support #KalimantanEnergyforIndonesia. PHI is headquartered in Jakarta. Further information about PHI is available on https://phi.pertamina.com.