Indonesian Political, Business & Finance News

Pertamina Upstream Division Prepares Production Boost Strategy for 2026

| Source: CNBC Translated from Indonesian | Energy
Pertamina Upstream Division Prepares Production Boost Strategy for 2026
Image: CNBC

PT Pertamina Hulu Energi (PHE) has reaffirmed its commitment to increasing national oil and gas production whilst developing low-carbon energy businesses amidst global energy industry challenges.

As Pertamina’s Upstream Subholding, PHE currently manages approximately 27% of Indonesia’s oil and gas working areas and contributes significantly to national production. In 2025, PHE accounted for approximately 65% of domestic crude oil lifting, approximately 396,000 barrels per day (MBOPD), and 35% of domestic gas lifting at 1.8 billion cubic feet per day (BCFD).

Edi Karyanto, Director of Strategic Planning, Portfolio and Commercial Affairs at PHE, stated that the company continues to drive various strategic programmes to maintain sustainability of national oil and gas production amid geopolitical challenges and increasing operational complexity.

“Strengthening exploration, optimising existing fields, development and implementation of production-enhancement technology will be key factors in sustaining national oil and gas production, whilst opening potential new resource opportunities across various Indonesian petroleum basins,” he said during a Media Engagement activity for Pertamina’s Upstream Subholding in Jakarta on 11 March 2026.

Throughout 2025, PHE’s oil and gas production reached approximately 1 million barrels of oil equivalent per day (MMBOEPD), comprising 557 MBOPD and 2.8 BCFD. Beyond maintaining production performance, PHE also achieved several strategic milestones, including resource discoveries of up to 1 billion barrels of oil equivalent (BBOE) and implementation of various production-enhancement technologies such as multistage fracturing, steam flood, and chemical enhanced oil recovery (CEOR).

For 2026, PHE is preparing several programmes to manage natural decline, increase production and oil and gas resources. These programmes include drilling 16 exploration wells and 800 development wells, supplemented by 1,284 workover operations, 2D seismic surveys spanning 904 kilometres, 3D seismic surveys covering 1,660 square kilometres, and well intervention and well service (WIWS) activities reaching 33,000 operations.

The production enhancement strategy is also being executed through development of existing fields (brownfield), development of new fields (greenfield), and application of EOR technology to increase hydrocarbon recovery from producing fields.

The company is additionally strengthening exploration of new resources including non-conventional oil potential (MNK) and strategic partnership opportunities through acquisitions.

PHE is implementing a Dual Growth Strategy, maximising core oil and gas business whilst developing low-carbon energy business through carbon capture storage/carbon capture utilisation and storage (CCS/CCUS) technology and various operational decarbonisation programmes. This approach aligns with government efforts to increase national oil and gas production whilst safeguarding energy security during the transition towards cleaner energy.

Through these various strategic programmes, PHE continues to enhance its contribution to national oil and gas production whilst strengthening Indonesia’s energy resilience.

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