Pertamina Forges Gas Utilisation Partnership for Refinery Operations

PT Pertamina (Persero), through Pertamina Patra Niaga, has entered into a Gas Sales and Purchase Agreement with Indo Sino Oil and Gas (ISOG). The gas originates from the Karamba Field in the Wain Working Area (WK). This partnership aims to strengthen refinery operational reliability by meeting natural gas needs to support energy processing at refineries. The signing of the Gas Sales and Purchase Agreement will support the operations of Refinery Unit V Balikpapan, one of Pertamina’s strategic refineries in East Kalimantan, including the Refinery Development Master Plan (RDMP) Balikpapan project. Through this collaboration, natural gas from the Karamba Field WK Wain will be supplied until 2037, with planned deliveries commencing on 28 May 2026. Direktur Niaga of Pertamina Patra Niaga, Erwin Suryadi, explained that this partnership represents a synergy between the upstream and downstream oil and gas sectors in strengthening the national energy supply chain. According to him, reliable natural gas supply is a key factor in maintaining refinery operational reliability to produce higher-quality energy products for the public. “This moment is very valuable as it proves that collaboration between upstream and downstream is an inevitability that must be built together. To produce low-sulphur fuel oil (low sulphur), reliable gas supply support is needed. Through this partnership, we hope that Pertamina’s refineries will become stronger and capable of producing higher-quality energy products for the public,” Erwin stated in a press release received on Wednesday (13/5/2026). On the same occasion, Deputi Keuangan and Komersialisasi of SKK Migas, Desti Melani, expressed appreciation for the implementation of this partnership. According to Desti, synergy between upstream oil and gas business actors and Pertamina Patra Niaga as the off-taker or absorber of gas production is very important to support the optimisation of national gas production. “We hope that Pertamina through Pertamina Patra Niaga can optimally absorb gas production results, including from WK Wain, so as to support the 2026 lifting targets and state revenues. We also hope that all operational processes and joint efforts carried out with the operator, in this case Indo Sino Oil and Gas, can run smoothly and be well realised through the support of all parties,” Desti said. The Gas Sales and Purchase Agreement signing was conducted by Erwin Suryadi and ISOG’s Direktur and General Manager, Tang Zhongfu. The signing ceremony was witnessed by Desti Melani, Head of the Oil and Natural Gas Commercialisation Division of SKK Migas Ufo Budiarius Anwar, Head of the Natural Gas Commercialisation Department of SKK Migas Selvi, and Buddy Beer as President and General Manager of Pandawa Prima Lestari as ISOG’s partner. Pertamina Patra Niaga and Indo Sino Oil and Gas are also exploring opportunities for further collaboration to utilise gas potential from the Mentawir Field for the needs of Refinery Unit V Balikpapan and RDMP Balikpapan. Through this step, Pertamina Patra Niaga reaffirms its commitment to continuously supporting national energy resilience and independence through integrated and sustainable energy supply management.