Dwi Soetjipto – President Director & CEO, Pertamina, Indonesia
Pertamina’s CEO highlights the gaps that it intends to fill to secure a steady oil and gas supply to meet Indonesia’s growing energy demands. Furthermore he extends the hand to foreign as well domestic entities for collaboration to benefit all stakeholders in Indonesia.
What are Pertamina’s current main areas of focus?
Our main priority is to secure supply for Indonesia’s energy consumption. Currently we identify three gaps we aim to bridge before 2025: capacity, efficiency and infrastructure.
The first gap we have to bridge is our refining capacity. Our ambition is to enhance our refining capacity from the current 800,000 boepd to more than two million boepd in the next ten years, hence why one of our focus points is to modernize current refineries whilst building new refineries.
The second gap to bridge is the insufficient output efficiency. The Indonesian upstream sector is dominated by legacy fields and mature wells; we, and our counterparts acting in Indonesia, need to implement improved oil recovery (IOR) and enhanced oil recovery (EOR) techniques to consequently together enhance the output to 1.9 million bpd before 2025.
The third gap to bridge is Infrastructure development; where collaboration is needed in order to fulfil the domestic energy needs. I estimate that total Investment into infrastructure development of USD 100 billion will be needed to accommodate our goals until 2025, and provide the right conditions for the recovery of Indonesia’s oil and gas industry. Of course Pertamina will play its part and take on responsibility for the investments needed, yet it should be clear that we will not be able to stem this heavy financial burden alone. We are dependent on our foreign and domestic counterparts to collaborate, as only with joined forces we will be able to implement the infrastructure developments vital for Indonesia’s future.
What role does Pertamina have in helping to restore investor confidence in the Indonesian upstream sector?
Pertamina is open to collaborate and partner with overseas actors and thus assist in successfully establishing operations here for the benefit of both companies and the country. I identify special opportunities for partnerships bridging aforementioned capacity gaps.
An ideal partner is a company that is willing to invest and brings the needed financial-, supply- and know-how capabilities; we will be able to provide administrative-, environmental-, infrastructure-, land development-, and product delivery capabilities to create synergies beneficial for all stakeholders. We understand that there can be different perspectives on product branding, but we are open for discussion to resolve any disputes as our main concern is to secure a stable supply and price for Indonesia. We believe that such partnerships could bring us more control over the supply-demand balance as well as bringing needed investment to Indonesia!
One of the government’s areas of focus is infrastructure development in the oil and gas sector. What responsibility does Pertamina have in these plans?
The main infrastructure developments are needed in the gas sector: we need the further development of our pipelines, terminals, regasification units and innovative storage solutions in order to tap into the full potential of this promising sector. We believe this will be our main area of support and responsibility for infrastructure development.
The government has plans to enhance Indonesia’s oil and gas inventory from 60 to 90 days – we are not responsible for infrastructure development for the inventory capacity. Our concern is to bring the necessary supply and we will be accountable for any supply infrastructure development needed. We need the government to enhance the inventory capacity according to their plans so we can establish needed supply infrastructure accordingly!