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Pertamina under fire as production always below target
State-owned energy holding company Pertamina has been failing to meet its daily oil and gas production targets since last year, which in the long run would affect total state revenues from the energy sector.
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Pertamina Hulu Energi Offshore North West Java (PHE ONWJ) general manager Siswantoro M. Prasodjo (second left) hands over a symbolic agreement to SKKMigas head of project management and facility maintenance Luky Agung Yusgiantoro (second right), who is talking to Pertamina Hulu Energi (PHE) development director Afif Saifudin (right), while Meindo Elang Indah operational director Bambang Sucipto looks on during the launch of a rig platform owned by PHE ONWJ, a unit of PHE, a subsidiary of state-owned energy company Pertamina, in Kutai Kartanegara, East Kalimantan, on Monday.
(Antara/Risky Andrianto)
State-owned energy holding company Pertamina has been failing to meet its daily oil and gas production targets since last year, which in the long run would affect total state revenues from the energy sector.
Early this year, for example, many of Pertamina’s upstream subsidiaries failed to fulfill their targets for daily lifting, a term for ready-to-sell production, set by the state budget (APBN), according to data from the Upstream Oil and Gas Regulatory Task Force (SKKMigas).
PT Pertamina Hulu Mahakam (PHM), the operator of the Mahakam Block in East Kalimantan, which is one of the country’s largest blocks, showed its average lifting until April was only 42,717 barrels oil per day (bopd), only 85 percent of the target.
PHM's lifting was the worst of all of Pertamina’s upstream subsidiaries in terms of oil or gas lifting as it has the biggest shortfall from the target: 667 million metric standard cubic feet per day (mmscfd).
Commenting on PHM's deficient lifting, SKKMigas chairman Dwi Soetjipto said the problem was a lack of investment for drilling wells on the Mahakam Block.
“There are some problems in investment and we hope they could be overcome soon. We’ve met with PHM [representatives] to discuss this situation and we told them to speed up their investment until year-end,” he said during Wednesday's press conference about the country's upstream performance.
