Balikpapan- PT Pertamina Hulu Mahakam (PHM) received a working visit from the DPR RI Commission VII Team in Balikpapan Friday (17/1). The purpose is to see the operational, production, and gas distribution process in the Mahakam Work Area (WK) directly and obtain information regarding obstacles -obstacles encountered. H. Dony Maryadi Oekon, ST, from the PDI Perjuangan faction, led the visit.

During the visit, the DPR RI Commission VII Team had the opportunity to take part in a Focus Group Discussion with the management of the Central SKK Migas and SKK Migas Representative for Kalimantan Sulawesi (Kalsul) as well as the management of PT Pertamina Hulu Energi (PHE), PT Pertamina Hulu Indonesia (PHI), and PHM. Also present were the Director General of Oil and Gas, Directorate General of Oil and Gas, Prof. Ir. Tutuka Ariadji M.Sc., PhD., Deputy for Exploitation of SKK Migas, Wahju Wibowo, President Director of PHE, Wiko Migantoro, and General Manager of PHM, Krisna.

Deputy for Exploitation of SKK Migas, Wahju Wibowo, explained the process of operation, production, gas distribution, and various challenges faced in the Mahakam Work Area (WK). In addition, the FGD also discussed updates on the development of upstream oil and gas activities in Indonesia, including discussions on incentives to support the economics of the oil and gas business.

"In the past (WK Mahakam) was number one in the early 2000s. The Mahakam Region has entered a mature period and is experiencing a natural decline. However, with all the efforts made by PHM, especially after receiving the incentives given in 2021, oil and gas production, especially operations in the Mahakam, have begun to increase," said Wahju.

Wahju added that PHM is currently the second most active PSC Contractor after WK Rokan in the context of work to increase production in Indonesia's upstream oil and gas industry. Wahju explained that without the various efforts taken by PHM, the Mahakam WK oil and gas production would have decreased by 50%. This action, of course, will have an impact on various aspects. One of them, in the absence of feed gas, the Bontang Refinery will no longer be able to operate in 2025.

"By providing incentives, PHM can develop a work program that can increase total production and extend the lifetime of the Mahakam WK. In addition, providing incentives gives time to develop exploration results, for example, Discovery Manpatu in 2022," he concluded.

On the same occasion, H. Dony Maryadi Oekon, ST, said that oil and gas still have an essential role amid the ongoing energy transition process. Oil and gas continue to be needed as a source of energy and raw materials for various industries. "The challenge is to achieve the targeted lifting. This is not easy," said Dony. According to Dony, another challenge facing Indonesia's upstream oil and gas business today is the need for more investors in recent years.

"Currently, many investors do not want to invest in Indonesia." This idea became the discussion in Commission VII DPR RI to finalize the Oil and Gas Law immediately. It is hoped that other investors or contractors will return to investing in Indonesia," he said.

Through this working visit, Dony hopes that his team will obtain comprehensive information regarding the current conditions of the Mahakam WK, which will be followed up in work meetings and hearings with relevant partners according to their functions.

Lamhot Sinaga from the PDIP faction also expressed his opinion regarding oil and gas incentives. According to him, providing oil and gas incentives will make production more attractive and rebound. Mukhtarudin from the Golkar faction also expressed his appreciation for the performance of SKK Migas and PHM. Mukhtarudin considers that upstream oil and gas activities must be increased to increase lifting, and of course, the Government must also encourage it through supporting regulations.

Responding to these results, Wahju added that SKK Migas only proposed oil and gas incentives for some oil and gas fields. SKK Migas conducts strict selection for fields that need incentives. "Without incentives, our economy is not feasible. SKK Migas also tested this process (submitting incentives) before finally being approved by the Ministry of Energy and Mineral Resources," said Wahju.

The Main Director of PHE, Wiko Migantoro, added PHM continues to develop various technologies and innovations to find new sources of oil and gas reserves from exploration and exploitation activities. "We continue to drill new wells as a strategic step in curbing the rate of decline in natural products and maintaining the level of oil and gas production from mature fields," he said.

In addition, according to Wiko, the application of technology and innovation is also applied in wells' maintenance, repair, and reactivity to produce higher productivity and longer well life. Wiko also hopes this visit can increase synergy between institutions and provide significant support to maintain national energy security.

PT Pertamina Hulu Mahakam (PHM) is a subsidiary of PHI that carries out upstream oil and gas operations and business according to ESG (Environment, Social, Governance) principles in the Mahakam Work Area in East Kalimantan. PHM and other PHI subsidiaries and affiliates continue to carry out various innovations and technological applications in producing safe, efficient, reliable, compliant, and environmentally friendly energy to realize #EnergiKalimantanForIndonesia. Further information on PHI is available at https://phi.pertamina.com.