Balikpapan - PT Pertamina Hulu Mahakam (PHM), a subsidiary of PT Pertamina Hulu Indonesia (PHI) Subholding Upstream Regional Kalimatan, with the support from Special Task Force for Upstream Oil and Gas Business activities (SKK Migas), has contributed significantly to the cost optimization of Upstream Subholding through the Optimization Upstream (Optimus) project. The support is realized by promoting PHM cost optimization project, namely Low Operation Cost of Mahakam to Achieve Effectiveness and Efficiency (Locomotive-8). Some examples of the successful main initiatives implemented through Locomotive-8 project are optimization of Well Intervention and optimization of ex-termination material utilization.

Until the end of last July, PHM’s Well Intervention program has proven to contribute to the Optimus project by optimizing costs of   5.2 million USD, while the Ex-Termination Material Utilization program saved 13.2 million USD.

The Well Intervention Locomotive-8 Optimization Program has been able to keep the Mahakam Block oil and gas production level within the company’s target by achieving lower operational costs through learning method, redesigning and collaboration, and maintaining a good level of work safety. This is in accordance with the spirit of Optimus project, namely Changes in Work Philosophy, Technical Innovation and Standardization, and Operational Optimization.<br />
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In line with Supply Chain Optimization of Optimus project, all PHM officers also carry out intensive and sustainable Ex-Termination Material Utilization initiatives through Locomotive-8 project to make a significant contribution to cost saving. Ex-Termination Material Utilization program has received special attention and maximum support from SKK Migas and Subholding Upstream.

The Locomotive-8 project has 8 main initiatives, i.e. borderless &amp; synergy operation regional 3, marine &amp; logistic optimization, risk based maintenance and inspection, tri-axes (engineering, contract, workload) of well intervention optimization, technical innovation in drilling &amp; construction; integrated supply chain; perimeter reduction; and digitalization.&nbsp; In implementing the project, PHM applies the SCRUM method with Spirit of Agility for Mahakam Sustainability as a theme. This method promotes a transparent work process as well as quick and accurate adaptation to develop optimization ideas from complex operational situations.

The eight main initiatives of Locomotive-8 are further developed&nbsp; into an efficiency program at the overall Upstream level through the Optimus project. In the future, Locomotive-8 is expected to further strengthen efficiency and innovation practiced in the Mahakam Work Area, so that the Locomotive-8 project can be replicated in various fields at the Upstream level and will become an objective to support Optimus project realization.

Agus Amperianto, the General Manager of PHM, said, "PHM through the Locomotive-8 project continues to be committed to carrying out initiatives to optimize operational and production cost of oil and gas through innovation and synergy to maintain assets and the sustainability of fields in Mahakam Work Area."