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PHM Accelerates Gas Production with 20 MMSCFD Boost from New Mahakam Platform
Indonesia's energy landscape received a significant lift as Pertamina Hulu Mahakam (PHM) launched Platform WPN-7, boosting gas production by 20 million standard cubic feet per day (MMSCFD) in the Mahakam Block. This achievement underscores ongoing efforts to secure national gas supplies amid rising demands.Located offshore in East Kalimantan's mature Sisi Nubi field, WPN-7 went operational on March 23, 2026. It features two key wells: NB-701, which began flowing at 9.8 MMSCFD on March 25, and NB-702, achieving 12.5 MMSCFD by March 26. Together, they target a combined initial output of 20 MMSCFD, with PHM actively monitoring to stabilize and optimize performance in line with Q1 2026 objectives.This platform represents the third in the Sisi Nubi Area of Interest (SNB AOI) 1-3-5 project. Predecessors include WPS-4, activated December 4, 2025, and WPS-5 on February 23, 2026. These phased developments build on rigorous technical groundwork, revitalizing output from the longstanding Mahakam Block, a cornerstone of Indonesia's upstream sector.The boost aligns with broader national strategies, enhancing energy resilience. PHM's initiatives complement prior Mahakam projects that added substantial capacities, like up to 36 MMSCFD, supporting SKK Migas targets for oil and gas stability."These new wells play a vital role in ensuring steady gas availability and strengthening our upstream self-sufficiency goals," said PHM General Manager Setyo. As Indonesia navigates energy transitions, such milestones from mature fields like Mahakam remain crucial for economic and supply security into 2026 and beyond.
Written by: Christya
Indonesia to Begin Construction of Dumai-Sei Mangkei Gas Pipeline Network in 2025
The Dumai-Sei Mangkei gas pipeline project is a major infrastructure initiative in Indonesia, spanning approximately 428 then extended to 555 kilometers from Dumai in Riau to the Sei Mangkei Special Economic Zone (SEZ) in North Sumatra. Designed to bolster the industrial sector in Sumatra, the pipeline is expected to have a substantial transport capacity to meet growing energy demands, delivering up to 400 million standard cubic feet of gas per day (MMSCFD). The project is estimated to cost around Rp 7.8 trillion (approximately USD 500 million) and involves collaboration between state-owned enterprises and private sector stakeholders under the guidance of Indonesia’s Ministry of Energy and Mineral Resources (ESDM). The Dumai-Sei Mangkei gas pipeline is a strategically important project for Indonesia, which is essential for moving natural gas safely and efficiently from upstream production sites to downstream users, including industrial hubs and distribution networks. By providing a steady and reliable source of natural gas to the region, the pipeline supports industries across Sumatra, particularly in the Sei Mangkei Special Economic Zone (SEZ), a key industrial hub aimed at accelerating economic growth and job creation. Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said the completion of the Dumai - Sei Mangke gas pipeline project is part of efforts to anticipate excess natural gas, where there is a large gas potential in the Andaman Sea. Thus, it will be utilized for industries that need natural gas. Andaman Sea itself, known to have the promising hydrocarbon reservoirs waiting to be deciphered by experts around the world. The distribution takes the form of pockmarks, diapir, gas chimneys, and mud volcanoes governed by factors such as the presence of gas pockets, hydrocarbon reserves, fluid seepages, fumarolic activity, and gas hydrate occurrences within the sedimentary layers.The Dumai-Sei Mangkei gas pipeline is poised to deliver substantial economic and industrial benefits, creating numerous job opportunities during both its construction and operational phases. This influx of employment is expected to drive economic growth in the region, supporting local businesses and stimulating surrounding economies. Additionally, the Dumai-Sei Mangkei project could contribute to reducing the LPG 3 kg subsidy by an estimated Rp 420 billion per year, achieving a cost saving of Rp 107 billion annually, and generating foreign exchange savings of up to Rp 720 billion per year. The pipeline is also expected to yield substantial revenue for the government, with potential annual state revenue of Rp 1.89 trillion and Rp 12 billion from regulatory fees to BPH Migas. The Dumai-Sei Mangkei gas pipeline project represents a crucial investment in Indonesia’s energy and economic future. Set to begin construction in 2025 and targeted for completion by 2027. With substantial support from the Ministry of Energy and Mineral Resources, the Dumai-Sei Mangkei pipeline stands to enhance local economies, stabilize gas prices, and contribute an estimated Rp 1.89 trillion in annual state revenue, marking a transformative step forward for Indonesia’s energy infrastructure and industrial development.
Pertamina Acquires 24.5% Stake in Petronas Bobara Deepwater Block, Strengthening Indonesia–Malaysia Energy Cooperation
In a symbolic moment of regional energy cooperation, Indonesia’s state-owned energy giant Pertamina has taken a major step into the ultra-deepwater frontier. Through its upstream arm PT Pertamina Hulu Energi (PHE), the company has acquired a 24.5% participating interest from Petroliam Nasional Berhad (Petronas) in the Bobara Block, located in the remote deep waters off West Papua.The deal, sealed during the 47th ASEAN Summit in Kuala Lumpur on October 27, 2025, marks more than just a transaction, it signals a growing energy partnership between two Southeast Asian powerhouses. The Farm-Out Agreement (FOA), signed between PHE Bobara and Petronas E&P Bobara Sdn. Bhd., formalizes Pertamina’s entry into the Bobara Production Sharing Contract (PSC), alongside Petronas and TotalEnergies.For Pertamina, this move represents both strategic expansion and symbolic diplomacy. It not only strengthens the company’s position in frontier exploration but also underscores Indonesia’s commitment to regional energy collaboration amid the global push for sustainable growth.“This signing is not merely a contractual milestone but a tangible reflection of the Indonesia–Malaysia energy partnership,” said Pertamina President Director Simon Aloysius Mantiri. “It demonstrates complementary capabilities and a shared responsibility to enhance regional energy security and drive sustainable development.”Mantiri’s remarks resonated with the broader theme of the ASEAN Summit partnership for resilience. He also expressed confidence that this momentum could open new doors for Pertamina to expand in Malaysia, eyeing future opportunities such as operatorship in the Balingian PSC and other prospective offshore blocks.Meanwhile, PHE President Director Awang Lazuardi described the Bobara partnership as a milestone built on trust and shared vision.“The Bobara PSC aligns perfectly with PHE’s strategic focus exploring and developing new opportunities in frontier areas,” Lazuardi explained. “It’s a step forward that blends technical excellence with regional collaboration.”Beyond exploration, PHE continues to reinforce its Environmental, Social, and Governance (ESG) commitments across its operations. The company implements a Zero Tolerance on Bribery policy under the ISO 37001:2016-certified Anti-Bribery Management System (SMAP) , a framework ensuring transparency and accountability in every corporate move.As energy dynamics shift globally, the Bobara partnership stands as a testament to how regional cooperation can shape a more secure and sustainable energy future. With Indonesia and Malaysia deepening ties in the energy sector, the deal also reflects a broader transformation, where collaboration, not competition, fuels progress beneath the vast waters of the Pacific.
“The Rise and Fall of LNG in the Oil and Gas Industry and Its Impact on Energy Security”
What is LNG?Liquefied natural gas (LNG) is natural gas that has been reduced to a liquid state, through a process of cooling. LNG is odorless, colorless, non-toxic, and non-corrosive, but hazards include flammability after vaporization into a gaseous state, freezing, and asphyxia. It is typically 85-95% methane, which contains less carbon than other forms of fossil fuels, and also contains tiny amounts of ethane, propane, butane, and nitrogen. Why does LNG matter to energy security?In order to solve the energy trilemma—which means finding a balance between affordability, environmental sustainability, and energy security—LNG is essential. Since it effectively removes pollutants like SOx and NOx, liquefied natural gas (LNG) is acknowledged as a more environmentally friendly fuel substitute that helps to lower greenhouse gas emissions. It is the cleanest burning hydrocarbon that provides a clean solution to industrial sectors that need a high calorific value and the most difficult to electrify. It also can be used in a variety of industries, including power generation, manufacturing, and transportation. Natural gas power generation emits 45% to 55% less greenhouse gasses than coal. In developing economies, it will replace traditional biomass in heating and cooking which helps to reduce the health impacts of localized emissions from other fuels. As a fuel for heavy-duty road transportation, LNG has also demonstrated a notable decrease in emissions (both greenhouse and particulate) when compared to alternative fuels, thus helps diversify the fuel mix and lower air pollution. The benefits of using LNG in the oil and gas industry and its role in clean energy transitionsThe oil and gas industry is playing an important role in the energy transition by providing affordable and reliable energy. The industry is working through many cross-sector initiatives on the scale-up of quantification and resolution of methane emissions. An increasing number of oil and gas companies are part of the growth in the renewable energy sector investing in and producing energy through renewable technologies, in particular, wind, solar power, and biofuels. By reducing greenhouse gas emissions from operations through energy efficiency, flare reduction, and methane management, as well as increasingly powering operations with low-carbon or renewable energy sources, the oil and gas industry can considerably contribute to a net zero future. And through the increasing adoption of improved engine-fuel system efficiencies and the development of low-carbon mobility technologies like electric vehicles, biofuels, liquefied natural gas, ammonia, and hydrogen fuel cells, companies are also helping their customers to reduce their emissions.Strategic deal trends and projects in LNG in oil & gas industryGlobal demand for LNG is expected to continue growing. According to McKinsey, LNG demand is projected to grow by 0.5 percent from 2035 to 2050, with more than 200 million metric tons of new capacity required during this period. The share of LNG in the global gas supply is expected to increase from 13% to 23% by 2050, as it meets demand growth and replaces declining pipeline and domestic gas. The urgency to meet this demand is intensifying due to growing energy demand from regions such as Asia and the declining supply of domestic gas and the interruption of piped supply (such as Russian piped gas supply to Europe).

