PHE Output Under Pressure as Rokan Disruptions and West Qurna Closure Weigh on 2026 Production

Jun 15, 2026


PT Pertamina Hulu Energi (PHE), Indonesia's state-owned upstream oil and gas subsidiary, recorded total oil production of 475,000 barrels per day (bopd) through April 2026, a significant drop from the 556,000 bopd achieved across 2025. The company's CEO, Awang Lazuardi, attributed the decline to a combination of domestic operational setbacks and geopolitical turbulence abroad, revealing the breadth of pressures bearing down on Indonesia's largest upstream operator.

At home, the most disruptive incident occurred at Blok Rokan in Riau, PHE's single largest producing asset. Early in the year, a gas supply disruption arose after a pipeline integrity failure, specifically a leak in a transmission line operated by Transportasi Gas Indonesia (TGI). The outage lasted more than 20 days, severely curtailing the gas-powered energy supply to production facilities across the block. "Average oil production at Rokan dropped quite sharply," Awang said during a hearing with the House of Representatives' Commission XII in late May. Domestic output for the period stood at 367,000 bopd, down from 396,000 bopd in 2025.

Further domestic pressure came from Lapangan Banyu Urip, a joint-operated asset with ExxonMobil. PHE encountered facility constraints that limited efforts to ramp up gas production at the field, compounding the output shortfall at a time when the company was already struggling to recover losses at Rokan.

On the international front, PHE holds a participating interest in West Qurna-1, an oil field in southern Iraq. Due to force majeure caused by the conflict between the United States, Israel, and Iran, the Iraqi government ordered a temporary shutdown of the field. The move cost PHE approximately 100,000 bopd of production. Though operations have since been permitted to resume, output remains at less than ten percent of capacity, allocated solely to meet Iraq's domestic needs, and a full recovery timeline remains uncertain.

Together, these disruptions have pushed PHE's total production well below the government's 2026 lifting target of 610,000 bopd set in the state budget. Awang acknowledged the scale of the challenge but pointed to the temporary nature of several setbacks. Industry observers, however, note that structural vulnerabilities including aging infrastructure, geopolitical exposure, and dependence on a small number of high-output blocks continue to pose long-term risks to Indonesia's energy security goals.

Written by: Akhirian Taka

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