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Restructured Pertamina targets revenue of $93 billion in 2024


Jul 25, 2013
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Restructured Pertamina targets revenue of $93 billion in 2024


Divya Karyza (The Jakarta Post)
Jakarta ● Sun, September 19, 2021

Major restructuring completed recently at Pertamina is expected to help the state-owned energy giant achieve US$93 billion in revenue and $21 billion in net profit within three years.

State-Owned Enterprises (SOEs) Minister Erick Thohir said given that the company was aiming for a valuation of $100 billion in 2024, booking $93 billion in revenue was not an impossible task. “I think it is possible to achieve the target,” he said in an interview with CNBC Indonesia on Thursday.

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AlhamduliLLAH, the target is likely achievable as in 2022 Pertamina has posted revenue at 85 billion USD.



Media briefing on Pertamina's 2022 Performance, Tuesday (6/6/2023). Photo: Fariza Rizky Ananda/coil© Provided by Coil

President Director of Pertamina, Nicke Widyawati, revealed that the net profit achievement was also in line with Pertamina's revenue of USD 85 billion or Rp 1,262.34 trillion.


Indonesia Pertamina finalising takeover of Shell's Masela shares -CEO​

JAKARTA, June 6 (Reuters) - Indonesia state energy firm Pertamina is finalising an acquisition of Shell's SHEL.L shares in the country's Masela gas project, its chief executive officer said on Tuesday.

Indonesia's energy minister on Monday said Pertamina was leading a consortium of investors to take over Shell's 35% participating interest in Masela block.

Authorities are keen to develop the project after years of delays.

"There are high hopes that this giant gas block can be developed soon so the gas asset in Masela can be monetised," chief executive Nicke Widyawati told a press conference.

Shell's Indonesian unit had so far declined to comment on the possible deal.

Government officials had repeatedly urged Shell to deliver on the sale and accused it of dragging it out.



ExxonMobil exit warning of waning oil, gas industry

Fedina S. Sundaryani (The Jakarta Post) PREMIUM
Jakarta ● Fri, July 21 2017

The sudden exit of United States-based oil and gas giant ExxonMobil from the East Natuna energy block has become a major blow to Indonesia’s already struggling upstream oil and gas industry.

Investors’ appetite in the sector has long been waning even before ExxonMobil’s withdrawal announcement on Tuesday, due to concerns on regulatory uncertainties and lengthy red tape, in addition to the persistently low global oil prices.


Pertamina Step In


Pertamina Remanages East Natuna Block, Disburses Investment of IDR 194.5 Billion


The Ministry of Energy and Mineral Resources officially established a subsidiary of PT Pertamina Hulu Energi (PHE), PT Pertamina East Natuna to manage the East Natuna Block.

Nyoman Ary Wahyudi - Bisnis.com 30 May 2023 | 19:02 p.m.

Bisnis.com, JAKARTA — The Ministry of Energy and Mineral Resources (ESDM) has officially established PT Pertamina Hulu Energi (PHE) subsidiary, PT Pertamina East Natuna, to manage the East Natuna Block through an initial investment commitment of US $ 13 million or equivalent to IDR 194.5 billion (assuming an exchange rate of IDR 14,968 per US dollar).

Through this initial investment, PT Pertamina East Natuna will conduct G&G studies, acquisition and processing of 3D seismic data with an area of 430 square kilometers and 1 exploration drilling for the first 3 years.

"This is actually just the Arowana field with Barracuda, which here in D-Alpha is 70 percent Co2 yet," said Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Tutuka Ariadji in Jakarta, Tuesday (30/5/2023).

Meanwhile, the East Natuna Block is estimated to store oil resources reaching 2.2 BBO and gas amounting to 300 BSCF. The potential of these resources stretches over a concession area of 10,484.39 square kilometers.

"Pertamina will explore later, after that the last document will determine the exploration status (PSE) to be included in the development plan (PoD)," Tutuka said.

The decision was taken by the Ministry of Energy and Mineral Resources through the signing of the Work Area Production Sharing Contract (WK) at the Heritage Building of the Ministry of Energy and Mineral Resources, Jakarta, Tuesday (30/5/2023).

In addition to the East Natuna Block, there are two fields that are also given to Cooperation Contract Contractors (KKKS), namely Cage and Peri Mahakam.

The Ministry of Energy and Mineral Resources recorded a total investment of US $ 22.7 million and a signature bonus of US $ 600,000.

As is known, the Working Area (WK) of the Cage and Peri Mahakam (Exploration WK) is an area auctioned by the Government through the 2022 Phase II Direct Bidding Auction for the period November 2022 - January 2023 and the winner has been announced on February 22, 2023.

The Exploration WK Production Sharing Contract for the three WK has a period of 30 years.

"All KKKS have completed their financial obligations, namely the payment of signature bonuses and submitted implementation guarantees in accordance with applicable regulations before signing the cooperation contract," he said.


Indonesia Pertamina finalising takeover of Shell's Masela shares -CEO​

JAKARTA, June 6 (Reuters) - Indonesia state energy firm Pertamina is finalising an acquisition of Shell's SHEL.L shares in the country's Masela gas project, its chief executive officer said on Tuesday.

Indonesia's energy minister on Monday said Pertamina was leading a consortium of investors to take over Shell's 35% participating interest in Masela block.

Authorities are keen to develop the project after years of delays.

"There are high hopes that this giant gas block can be developed soon so the gas asset in Masela can be monetised," chief executive Nicke Widyawati told a press conference.

Shell's Indonesian unit had so far declined to comment on the possible deal.

Government officials had repeatedly urged Shell to deliver on the sale and accused it of dragging it out.



Shell plans to exit gas-rich Masela Block project​

Shell plans to exit gas-rich Masela Block project

Norman Harsono (The Jakarta Post) Jakarta
Tue, July 7, 2020

Dutch oil and gas giant Shell plans to sell its 35 percent stake in the gas-rich Masela Block, including in a major gas project, according to an official familiar with the matter.

Upstream Oil and Gas Special Regulatory Taskforce (SKK Migas) operations deputy Julius Wiratno told The Jakarta Post on Monday that Shell’s decision was based on the current low crude oil prices and development delays caused by the COVID-19 pandemic.

Read also: Indonesia aims to double gas production by 2030 with major projects in pipeline

“The process goes on. They cannot just pull out like that. They have to remain committed to their plans for this year, even if it’s at a limping pace,” he said. “The show must go on.”

Shell and Japan’s Inpex Corp, which controls the remaining 65 percent stake, were slated to develop a multibillion dollar liquefied natural gas (LNG) facility in the Abadi field in the Masela Block, which holds an estimated 10.7 trillion cubic feet of proven gas reserves. The block is located in the southeastern Arafura sea.

Julius said the government and companies had already signed deals on the block’s development plans. The two entities recently agreed to develop the LNG plant on Yamdena Island.

“It's becoming a wait and see situation and, maybe, there will be a recalculation,” he said.

The facility, slated to begin operations in 2027, is expected to produce 9.5 million tons of LNG per year and thus, help Indonesia realize its dream of becoming a global gas exporting economy by 2030.

Read also: Indonesia, Inpex agree on Masela development plan

Shell’s planned exit leaves a question mark over the fate of the Masela development, which had already been delayed for several years, due to disagreements over development plans.
Shell declined to comment, while Inpex was not immediately available for comment.

According to an AsiaTimes article on June 25 that cited anonymous sources, Shell’s plan to exit the Masela Block was due to President Joko “Jokowi” Widodo’s decision to build the LNG facility onshore, which removed the need for Shell’s floating LNG (FLNG) technology.

“Inpex is really upset and there is no agreement on how to proceed. The situation is really bad. Inpex feels betrayed and Shell is dragging its feet,” a source said.

Shell reportedly plans to sell its stake for US$2 billion dollars. Inpex wanted to buy the stake but at one-fifth of the price, said another source cited in the article.

Read also: Red flags raised for onshore Masela project

Shell, Inpex and SKK Migas initially planned to develop the LNG facility offshore but met resistance from former coordinating economic minister Rizal Ramli, who pushed for onshore development to create jobs for local residents.

The offshore versus onshore debate dragged on such that President Joko “Jokowi” Widodo personally intervened in late 2015. He chose to develop the project onshore, despite a privately-hired consultant recommending otherwise.

However, SKK Migas’s Julius refuted the article, saying that Shell’s exit decision was based on low crude oil prices and development delays amid the coronavirus pandemic.

France’s Total exits Indonesia fuel retail market


French oil company Total headquarters in La Defense business district, near Paris, on Oct. 21, 2014. (AFP/Martin Bureau)

Vincent Fabian Thomas (The Jakarta Post)
Jakarta ● Tue, May 11, 2021

Total Oil has closed all of its gas stations in Indonesia as the French oil and gas supermajor throws in the towel in a market overwhelmingly dominated by state-owned Pertamina.

Total Oil Indonesia marketing manager Magdalena Naibaho said on Tuesday that the Paris-based company had closed all 18 of its gas stations across Greater Jakarta and Bandung.

“This decision is in line with Total’s global strategy to actively manage our business portfolio,” she told The Jakarta Postvia text message. Magda noted that Total would still continue its lubricant selling operations as the other component of its local downstream business. However, she declined to comment on the tight market competition.

The decision makes Total the second oil and gas company to exit Indonesia’s fuel retail market after Malaysia’s Petronas...


RI Rich in Nickel, Pertamina Ready to Produce Electric Vehicle Batteries​


Monday, 23 Jan 2023 11:10 WIB

PT Pertamina (Persero) is ready to develop an electric vehicle (EV) battery ecosystem by optimizing nickel resources in the country. Nickel is one of the raw materials for making EV batteries.

Pertamina President Director Nicke Widyawati believes that the company can produce batteries and increase the penetration of electric vehicles. This is because Indonesia's nickel reserves are quite promising.

"We are confident that with nickel reserves in Indonesia, we can produce batteries and increase EV penetration," she said at the World Economic Forum, in Davos, Switzerland, as reported by Pertamina's official website, Monday (23/1).

According to her, Pertamina has infrastructure that can be optimized for the entry of electric vehicles, and has segmentation data on characteristics, mobility, and purchasing ability.

In addition, Pertamina also has more than 7,400 gas stations, 6,100 Pertashop, and 63,000 LPG outlets. Pertamina is also ready to collaborate with other parties from various countries to develop EV batteries and optimize their infrastructure.

Nicke said this commitment is in line with recommendations put forward by the B20 Energy, Sustainability and Climate Task Force (B20-TF ESC), one of whose recommendations is to accelerate ecosystem development.

"We propose several policy recommendations and policy actions, especially how to accelerate EV penetration in each country," she said.

Nicke revealed that the policy recommendations include accelerating the use of sustainable energy, ensuring a just and affordable transition, and increasing energy security.

To accelerate the use of sustainable energy, Pertamina targets energy efficiency, with electrification being the determining success factor.

"There are demand-side energy efficiency targets, how to manage demand-side energy efficiency, and we believe electrification to be a key success factor," she said.

In addition, Nicke also highlighted the need for financing, especially from developed countries, considering that the energy transition to renewable energy requires a very large capital investment.

The second policy recommendation is the need to ensure a just and affordable transition. In the recommendation, Nicke highlighted the need to prepare for a just transition from sectors affected by the energy transition to related sectors.

She said it was necessary to ensure sustainable practices in mineral access to build clean and low-carbon new energy infrastructure, including electric vehicles.

Then, the third recommendation is the need to increase energy security.

"We need frameworks and regulations like incentives to promote and accelerate the EV ecosystem," Nicke said.

Meanwhile, Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said the development of the EV ecosystem in Indonesia has begun by involving foreign companies and SOEs, including Pertamina.

There are at least four companies that have investment plans in Indonesia to support EV development, including LG, CATL, Foxconn, and BritishVolt.

According to Bahlil, the government welcomes serious investors coming to Indonesia by providing easy licensing facilities and tax incentives.

PT Pertamina CAPEX (Capital Expenditure) for the year 2022 has 60 % local content.


Pertamina Plans to Mix Pertamax with Bioethanol from Sugarcane​

News from Ekawan Raharja • 2 hours ago


Jakarta: Pertamina plans to launch a new type of biofuel, namely 5 percent bioethanol (E5). Later this type of fuel will be a mixture for Pertamax.

President Director (Dirut) of PT Pertamina (Persero) Nicke Widyawati revealed that the launch of the product is part of energy transition efforts in reducing dependence on fossil fuel use. "We want to launch a new product, namely bioethanol. So, firstx is mixed with ethanol," Nicke was quoted as saying by MediaIndonesia.com

Bioethanol is a sugarcane-based ethanol blend. When producing sugar, the liquid from the sugarcane will be extracted and heated to crystals. Molasses is a viscous black liquid with a syrup-like consistency that is left behind when crystallization of sugarcane liquid is complete.

He promised that the use of sugarcane products in drops or molasses processed into ethanol, would not interfere with domestic sugarcane production. In the launch of bioethanol products with Pertamax will be carried out in a pilot project or pilot.

"What's the fight with the sugar factory later? No, it's just molasses. So the sugar factory is still running and Indonesia's potential is indeed large," said Nicke.

Previously, the government had conducted a trial of blending 5% ethanol into pertalite type fuel on land owned by PT Perkebunan Nusantara or PTPN in Surabaya, East Java (East Java).

Nicke hopes that the use of blending bioethanol into various fuel oils can be a solution to realize national energy security.


Preparing US$ 800 Million Fund, Pertamina Continues Development in Algerian MLN Block​


Rio Indrawan | Friday, 16/06/2023 09:18:21 AM

JAKARTA – PT Pertamina (Persero) through its subsidiary in Upstream Subholding, PT Pertamina Internasional EP (PIEP) operating in Algeria under PT Pertamina Algeria EP (PAEP) extended a new hydrocarbon contract at Menzel Lejmat Nord (MLN), Block 405. The extension of this management contract is in accordance with Algerian legislation No. 19-13 which regulates hydrocarbon activities. The signing took place at Sonatrach's headquarters on Thursday, June 15, 2023.

PIEP manages the MLN field with its partners, Sonatrach and Repsol Exploracion 405a SA. The production sharing contract signed is a continuation of the memorandum of understanding agreed between the three companies on September 28, 2022.

Operating cooperation under the aforementioned contract is the MLN field and nine other fields that include the unitization of Ourhoud and El Merk.

The work program in particular includes the drilling of twelve oil wells and water injection wells, the connection of new development wells, and the construction of LPG extraction units and 3D WAG (Water Alternating Gas) seismic acquisition projects, as well as solar energy production projects.

The total amount of investment planned for the implementation of this development is estimated at more than US $ 800 million and it is estimated that the oil and gas that can be produced is almost 150 million barrels of oil equivalent.

The signing of this contract is in accordance with the desire of the three partners to realize it within the contractual scope of MLN and to strengthen cooperation in the field of hydrocarbon exploration and production.

Nicke Widywati, President Director of Pertamina, revealed that the contract extension could finally be realized after intensive discussions with partners.

"After careful contract preparation, Pertamina and partners finally agreed on a new journey of oil and gas operations in Algeria. Our commitment for the long term will be a new and exciting journey, reaffirming our global footprint together with Sonatrach and Repsol," Nicke said in his statement, Friday (16/6).

Meanwhile, Jaffee A Suardin, President Director of PIEP, explained that PIEP has the potential to produce peak production in block 405a of 36,000 Barrel Oil Equivalent Per Day (BOEPD) and open up new development opportunities in the surrounding region in the next 25 years (and the potential for an additional 10 years contract extension). "This reflects our strong projection going forward in line with Pertamina's core strategy to become a world-class energy company," Jaffee said.

The signing of this contract was witnessed by the President Director of PT Pertamina (Persero), Nicke Widyawati; President Director of PT Pertamina Hulu Energi, Wiko Migantoro; President Director of PT Pertamina Internasional EP, Jaffee A. Suardin; Sonatrach Group CEO Toufik Hakkar as well as other partners Repsol Algeria and Algerian authorities. (RI)


Indonesia's Pertamina reaches $3.1 billion financing deal for Balikpapan​

24 Jun 2023
11:14 AM

JAKARTA : Indonesia's state energy company Pertamina reached a $3.1 billion financing deal with a number of export credit agencies and commercial banks to fund the upgrade of its Balikpapan refinery, the company said on Saturday.

The lenders include export credit agencies from South Korea, Italy and the United States, and 22 commercial banks, Pertamina said in a statement.

Pertamina will use the funds for the expansion of its Balikpapan oil refinery to a capacity of 360,000 barrels per day (bpd), from 260,000 bpd. The refinery would also be able to produce fuel with Euro V emission standards after the upgrade, the company said.

"With the improvements, Pertamina will be able to produce more environmentally friendly fuels and this certainly will support reaching Indonesia's net-zero emissions target," said Pertamina spokesperson Fadjar Djoko Santoso.

As of June, the Balikpapan construction was about 74 per cent complete, according to Feri Yani, president director of Kilang Pertamina Balikpapan, the company unit responsible for the refinery.

The Balikpapan project is part of Pertamina's long-term refinery investment blueprint, a 2015 plan to nearly double its total processing capacity to 1.5 million bpd.

Earlier this year, the chief executive of Pertamina's refinery group said the company is adjusting its expansion plans to align with the global transition towards the greater use of renewable energy.

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Pertamina oil field in Middle East



Pertamina to buy part of Exxon stake in huge Iraqi oilfield-sources​

By Reuters Staff

LONDON, Aug 22 (Reuters) - Indonesia’s state oil firm Pertamina is set to buy a stake in Iraq’s giant West Qurna oilfield from Exxon Mobil, joining PetroChina in the $50 billion project, industry and Iraqi oil sources said on Thursday.

The deal could be Pertamina’s largest foreign acquisition and mark its first move into Iraqi oil and gas production since U.S.-led forces toppled leader Saddam Hussein in 2003.

As things now stand, Pertamina is likely to take a 10 percent stake in the project at the southern oilfield, now pumping nearly 500,000 barrels per day, the sources said. (Reporting by Peg Mackey; editing by Jason Neely)

Our Standards: The Thomson Reuters Trust Principles.


Indonesia's Pertamina says Iran oil field deal frozen over US sanctions​

By Reuters Staff

WASHINGTON, June 26 (Reuters) - Indonesia’s government decided last month to freeze Pertamina’s deal to operate the Mansouri oil field in Iran because it wanted to preserve the country’s “good relationship” with the United States, Pertamina’s Acting Chief Executive Nicke Widyawati said on Tuesday.

“We have a good relationship with the United States, and so, it is on hold,” Widyawati told Reuters, adding that the decision came after consultations between Indonesia’s presidency, energy and mines ministry, and Pertamina.

Widyawati made the comments at an event on the sidelines of a global natural gas conference in Washington. She would not say whether the Mansouri project was likely to be revived in the future.

The U.S. State Department on Tuesday said it was pushing allies to cut their crude imports from Iran to zero as part of renewed sanctions it is imposing after President Donald Trump abandoned a deal reached in late 2015 that limited Tehran’s nuclear ambitions.

Indonesia, a former OPEC member, is becoming a growing energy trading partner with the United States, with a 20-year liquefied natural gas supply deal with U.S. exporter Cheniere Energy that begins this year.

Widyawati said some portion of early deliveries from that deal would likely be resold by Pertamina’s trading operation, since Indonesia’s own gas production will likely meet domestic demand until at least 2020.

“Yes, some of it will be resold,” she said.

She said, however, Indonesian gas demand would rise sharply in the coming years due to new petrochemicals facilities and a gas-fired power plant coming on line. (Reporting by Richard Valdmanis; Editing by David Gregorio)

Our Standards: The Thomson Reuters Trust Principles.


Company Profile Pertamina International Shipping​

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Pertamina Builds Two Green Refineries, Environmentally Friendly Fuel Production​

News from Happy Fajrian • 3 hours ago


Cilacap Refinery

PT Kilang Pertamina Internasional is committed to developing its current operating refineries into green refineries to produce more environmentally friendly products. Pertamina's two green refineries are at the Cilacap Refinery, Central Java and the Plaju Refinery, South Sumatra.

Green refinery is a strategic initiative in achieving the national New Renewable Energy (EBT) mix target in 2025 to be able to produce more environmentally friendly fuels using renewable feedstock.

Pertamina targets to increase production in a number of biofuels such as Pertamina Renewable Diesel from vegetable oil or hydrotreated vegetable oil (HVO), Bioavtur, and BioNaphta which is targeted to be completed no later than 2027.

President Director of PT Kilang Pertamina Internasional (KPI), Taufik Aditiyawarman, said that the expansion of the company's biofuel production volume refers to the National Energy General Plan (RUEN), where fuel demand is estimated to continue to increase until 2040.

Within REUN, Pertamina's refinery development roadmap refers to increasing processing capacity from 1.05 million barrels per day (bpd) to 1.4 million bpd. Furthermore, fuel production from 700,000 bpd to 1.2 million bpd.

Furthermore, the increase in production also targets Petrochemical commodities from 1.6 million tons per year to 7.4 million tons per year. The increase in domestic fuel production aims to reduce imports of gasoline products (gasoline) to 25%.

The current gasoline imports are still stuck in the range of 60%. Through the refinery renewal roadmap, Pertamina also prepared an environmentally friendly fuel production strategy equivalent to EURO V and increased the Nelson Complexity Index (NCI) or refinery complexity for product value.

"Pertamina's Green Refinery is Pertamina's Refinery's commitment to produce quality and environmentally friendly fuel," Taufik said in a press release on Friday (14/7).

So far, the Cilacap refinery is able to process raw materials for fuel mixtures from palm oil or refined bleached deodorized palm oil (RBDPO). In the future, Pertamina plans to increase the refinery's ability to process used cooking oil (UCO) into biofuels and HVO.

HVO is a renewable diesel produced through hydrogenation and hydocracking processes using hydrogen. The main product of HVO can be referred to as green diesel or D100.

Pertamina's closest plan at this time is to develop phase two of the Cilacap Green Refinery to increase processing capacity to 6,000 bpd with a wider feedstock variant and capable of processing used cooking oil.

Pertamina targets phase two Cilacap Green Refinery to be operational in 2026 to improve product quality and reduce exhaust emissions.

Pertamina also plans to expand the processing capacity of the Plaju Refinery to a processing capacity of 20,000 bpd to be able to produce Pertamina RD, Bioavtur, and BioNaphta by 2027.

"The development of green fuels from Pertamina's green refinery shows Pertamina's Refinery's commitment in achieving clean and affordable energy goals and is in line with Pertamina's Refinery's commitment to maintaining national energy security and supporting net zero emissions by 2060," said Taufik.


Pertamina Drills First Rokan Block, Targets Production of 1 Million Barrels per Day​

News from Tempo.co • 3 hours ago


TEMPO.CO, Jakarta - PT Pertamina (Persero) drilled or tajak the first exploration well in the Duri Field of the Rokan Block with unconventional drilling technology. The use of this technology is the company's effort to achieve the petroleum production target of 1 million barrels per day.

President Director of Pertamina, Nicke Widyawati, said unconventional drilling technology had been applied in the United States (US) in 2010. According to her, it succeeded in turning the US from a net importer to a net exporter within 10 years.

"The application of unconventional drilling technology can increase the production of the Rokan Block to strengthen national energy security, while supporting the target of 1 million barrels of petroleum per day that has been launched by the government," Nicke said in her official statement, Friday, July 21, 2023.

She continued PT Pertamina Hulu Rokan as Pertamina's upstream subholding that manages the Rokan Block has collaborated with a US company experienced with unconventional drilling technology, namely EOG Resources.

"With EOG's experience, it is expected to produce results to find even greater oil and gas reserves to realize national energy security," said Nicke.

The first application of unconventional drilling technology, she continued, was carried out at the North Duri Development (NDD) Field Area 14 Stage-1. The application of this new technology is part of the development of a new steamflood area after the takeover of the management of the Rokan Block by Pertamina.


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