How Pertamina EP Deal with Production when Oil Weakens

Annisa ayu artanti    •    Sabtu, 22 Aug 2015 10:22 WIB
How Pertamina EP Deal with Production when Oil Weakens
Pertamina (Photo: Antara), Palembang: The world oil price currently still shows no sign of increase, as it revolves around US$40.80 per barrel. As related to that, PT Pertamina EP stated they have conducted several efficiency measures so that the production activities is not disrupted.

Director of Development PT Pertamina EP, Herutama Trikoranto justified that the condition of world oil has a great effect on the upstream sector. He stated that Pertamina EP has conducted a reduction of investment budget to deal with the non-beneficial world oil price.

"This (oil price) has an effect on Pertamina EP. We reduced the investment budget," said Heruktama at the Office of PT Pertamina EP Asset 2, Prabumulih, Palembang, Thursday, August 20, 2015.

However, the government did not conduct any mass layoffs as many other oil companies did. Pertamina EP even still committed to conduct oil and gas production activity.

"But it is still committed to refrain from employee layoffs. If we're following the news, there are many who have conducted layoffs. What did we do? We conducted operational efficiencies," he revealed.

Meanwhile, the General Manager of PT Pertamina EP Asset 2 Prabumulih, Ekariza, explained the operational cost efficiencies are included in the 2015 budget efficiency. He hoped to conducted 20 to 30 percent of efficiency from the total budget.

"That is what the company has targeted overall. But we are looking at different fields. It is hoped that we may do at least 10 to 20 percent of efficiency for our operational," explained Ekariza.

Aside from efficiencies, from the budget, Pertamina EP has also conducted efficiency in the field of production at the existing wells. "We conduct other efficiencies with the production of the existing wells," concluded Ekariza.

For information, one of the results of the operational budget efficiencies is the trowel drilling of PMB-P14 TW/33 well, which began on Tuesday, August 11, 2015.