UPSTREAM BUSINESS

Upstream Directorate of PT PERTAMINA (PERSERO) has now function as a sub-holding responsible for all PERTAMINA portfolio in upstream energy business sector. Resolved to become a world class oil & gas business player, Upstream Directorate has developed Long Term Corporate Planning 2007-2014, aiming for the position of "World Class Diversified Upstream Energy Enterprise" in 2014. The target will be pursued through development phases following strategic policies: "Sustainable Growth through Organic Expansion and Strategic Alliance".


As part of the corporation, Upstream Directorate is assigned to manage business units in upstream energy sector. Its activities include exploration, production, transportation, processing, and power generation from various resources such as oil, gas and geothermal energy, including related activities, domestically as well as internationally. The following are profiles of PERTAMINA subsidiaries in upstream sector of Indonesian energy industry:


1. PT PERTAMINA EP (PEP) stated the vision of "PEP World Class" in 2014. This subsidiary performed the operation of oil & gas activities through exploration and exploitation and sells the produced oil & gas. PEP is also performed other, directly or indirectly supportive activities to reach its goals.

PEP operates most of the Working Area of PT PERTAMINA (PERSERO) since its establishment on 17 September 2005 which includes working areas operated under TAC (Technical Assistance Contract, totally 33 contracts) and JOB EOR (Joint Operating Body - Enhanced Oil Recovery, of 3 contracts).


2. PT PERTAMINA GEOTHERMAL ENERGY (PGE) is the subsidiary to operate PERTAMINA geothermal energy business. Currently PGE operates 15 geothermal mining working areas which contain reserves amounting to 8.480 MW while the installed capacity is currently 852 MW.

Its business development toward 2014 vision of: "World Class Geothermal Energy Enterprise", PGE is aiming to become the world's 3rd largest geothermal producer with production capacity of 1035 MW.


3. PT PERTAGAS is PERTAMINA subsidiary in executing gas business that includes gas trading, transportation, distribution, processing and other natural gas related businesses.

To clearly define its goals and existence, PT PERTAGAS has stated its mission as "Conducting natural gas business and the related business, professionally, to provide added values to its stakeholders, environmentally perceptive, prioritize on health, safety and excellence." In 2014, PT PERTAGAS is targeting to become world class gas enterprise that actively and integrally involved in all sector of gas business gas, well respected and become the market leader in the business, domestically as well as internationally.


4. PT PERTAMINA HULU ENERGI (PHE) is the subsidiary of PT PERTAMINA (PERSERO) to manage upstream portfolio of oil, gas and other energy sector. PHE future activities are designed in accordance to its 2014 vision: "Respectable Multinational Upstream Energy Company".

PHE main task is to manage and develop oil and gas upstream portfolios which has been or will be executed through partnership schemes such as JOB-PSC, IP/PPI, BOB or any other form of partnership, domestically as well as internationally. The task is expressed in PHE mission statement as follow: To execute operational management and upstream sector's portfolio of oil, gas and other primary energy businesses, flexibly, actively, and highly profitable, to provide added value to its stakeholders.


5. Drilling Services Hulu (DS) is currently one of Upstream Directorate's Strategic Business Unit (SBU) that manage the services of drilling and work-over activities. DS is being prepared to become the next subsidiary of PERTAMINA in the same activities.

Initially DS is the drilling department of the former Exploration & Production Directorate of PERTAMINA. Based on the decree of PERTAMINA President & CEO No. Kpts-081/C00000/2006-S0 dated 17 July 2006, DS was re-attached as a SBU to the organization of Upstream Directorate in order to its establishment as a subsidiary.


6. Exploration and Production Technology Center (EPTC) was established on 27 September 2006. Its activities are focused on the development and innovation on earth sciences and technology, to support PERTAMINA exploration and production activities by providing reliable, responsive and effective, end-to-end EP technology solution.

EPTC stated its 2014 vision as: "The Center of Excellence on Upstream Technology which have the capability of a World Class EP Technology." The implementation of the vision includes the achievement of world class standard on information system management, HRD management, Technology Center Facilities, technological capabilities and In-house Software Proprietary.
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