PHE Strategy to Boost Oil and Gas Production in 2026 and Low-Carbon Energy Development
Amid growing demand for oil and gas, PT Pertamina Hulu Energi (PHE), Pertamina’s upstream subsidiary, is committed to increasing national oil and gas (migas) production whilst developing low-carbon energy solutions amid global energy industry challenges.
PHE currently manages approximately 27% of Indonesia’s oil and gas working areas and makes a significant contribution to national production. In 2025, PHE contributed approximately 65% of domestic oil lifting at around 396,000 barrels per day (MBOPD) and 35% of domestic gas lifting at 1.8 billion cubic feet per day (BCFD).
Edi Karyanto, PHE’s Director of Strategic Planning, Portfolio and Commercial Affairs, explained that the company continues to advance various strategic programmes to sustain national oil and gas production amid geopolitical challenges and increasingly complex operational conditions.
“Strengthening exploration, optimising existing fields, development and implementation of production enhancement technology will be key factors in sustaining national oil and gas production, while unlocking new resource potential across Indonesia’s various oil and gas basins,” he stated during a media engagement activity of Pertamina’s Upstream Subholding in Jakarta on Tuesday (10 March).
Throughout 2025, PHE’s oil and gas production reached approximately one million barrels of oil equivalent per day (MMBOEPD), comprising 557 MBOPD and 2.8 BCFD. Beyond maintaining production performance, PHE also recorded several strategic achievements, including the discovery of resources of up to one billion barrels of oil equivalent (BBOE) and the implementation of various production enhancement technologies such as multistage fracturing, steam flood and chemical enhanced oil recovery (CEOR).
In 2026, PHE is preparing several programmes to manage natural decline, boost oil and gas production and resources. These programmes include drilling 16 exploration wells and 800 production wells. The company will also conduct 1,284 workover operations. In surveying, the company targets 904 kilometres of 2D seismic surveys and 1,660 square kilometres of 3D seismic surveys. There will also be 33,000 well intervention and well service (WIWS) operations.
Production enhancement strategy is also being pursued through brownfield (existing field) and greenfield (new field) development. The company is beginning to apply EOR technology to increase hydrocarbon recovery from producing fields.
Moreover, the company continues to strengthen exploration of new resources including non-conventional oil (MNK) potential and strategic partnership opportunities through acquisition.
PHE is implementing a Dual Growth Strategy, maximising its 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 efforts to support the government’s target of increasing national oil and gas production whilst securing energy resilience 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.
PHE will continue to invest in managing upstream oil and gas operations and business according to Environmental, Social and Governance (ESG) principles. PHE remains committed to Zero Tolerance on Bribery by ensuring fraud prevention and ensuring the company is free from bribery.