Unveiling Synergy: SPE ITS SC’s Integrated Welcome Party and Oil & Gas 101

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

Every time you gas up your vehicle, you're drawing on the product of a complicated industrial process that converts raw crude oil into something usable. Natural resource crude oil pumped from below-ground reservoirs cannot be used in its native form. In order to be converted into gasoline, diesel, jet fuel, or even asphalt and plastics, it must go through a complex refining process. This article delves into the intricacy of every process used in oil refining, from raw extraction up to the final distribution.Distillation (Fractional Distillation)Refining starts with distillation, or fractional distillation. First, crude oil is heated in a furnace at temperatures ranging from 350°C to 400°C. The scorching blend is then channeled to a distillation column, which is a large steel column in which the constituents of crude oil are separated on the basis of their boiling points. Lighter fractions like gases (propane and butane) and gasoline rise to the top, middle-weight fractions like kerosene and diesel condense in middle levels. Heavier fractions like lubricating oils and asphalt descend to the bottom. Every fraction exits the column at various levels for processing.Conversion ProcessAfter distillation, heavier fractions with large hydrocarbon molecules undergo conversion to produce lighter, more useful products. Cracking breaks these molecules down—either with heat (thermal) or catalysts (catalytic). Reforming restructures them to boost fuel octane, while alkylation combines light molecules into high-octane components for gasoline. These steps maximize the value and efficiency of each barrel of crude oil.Treatment ProcessBefore sales or use, products must be treated for the removal of impurities that can harm engines, pollute the environment, or rust equipment. The process of hydrotreating with hydrogen gas in the removal of sulfur, nitrogen, and trace metals is a critical treatment process. Desulfurization is also a very critical step, especially for those fuels like diesel and gasoline that are under tight low-sulfur requirements. Sweetening operations are used to remove malodorous hydrogen sulfide and other reactive compounds. Sweetening operations ensure petroleum products are clean, efficient, and friendly to the environment.BlendingOnce products have been refined and processed, they are yet to be marketed. The final process is blending, in which different hydrocarbon streams are combined to achieve wanted qualities such as octane number (in gasoline) or cetane number (in diesel). Additives are also added at this stage—for instance, detergents, antioxidants, or anti-knock additives—to improve performance, increase engine life, and reduce emissions. Blending ensures that every liter of fuel meets regulatory requirements and performance standards before it reaches consumers' hands.After being mixed and processed, the end petroleum products are stored in enormous tanks and available for distribution. Distribution logistics are complex and global in nature. They are transported by pipelines, oil tankers, railroad cars, or trucks to refineries and fueling stations. Some are exported, others to airports, industrial facilities, and retail service stations. Such a vast infrastructure makes energy resources on-demand available across continents and regions.It is a very intricate and engineered procedure to transform crude oil into the wide variety of products we use daily. Starting with distillation and molecular changes, then scrubbing and blending, every move is carefully tailored to achieve highest efficiency, security, and quality of product. The next time you pump your gas or hit the air in an airplane, you're relying on this unbelievable system of science, engineering, and logistics. Understanding the processing of oil not only uncovers the hidden complexity of everyday comforts but also highlights the requirement for innovation and sustainability in our energy infrastructure

The Society of Petroleum Engineers (SPE) ITS SC recently organized the SPEak Up! Guest Lecture program in collaboration with SPE UTM SC from Malaysia and SPE PSU SC from the Philippines. With the theme 'Revolutionizing Production Through Next-Gen Oilfield's Digital Odyssey,' this collaborative initiative aims to enhance SPE members' understanding of the oil and gas industry perspectives in the digitalization era. Hosted annually by the Academia and Competency Development Department of SPE ITS SC, The recent SPEAK UP Guest Lecture featured industry experts, including Mr. Tomi Ihwanto from Pertamina Hulu Rokan, Engr. Arnold Gabuco from Philippines, and Dr. Ahmad Khanifar from Petronas Malaysia, shedding light on the transformative role of Artificial Intelligence (AI) in redefining oil extraction strategies and enhancing oil fields.The first session of the event, featured a presentation by Mr. Tomi Ihwanto which emphasized the importance of embracing digital technologies in order to stay competitive in the constantly evolving oil and gas industry. He highlighted this by saying, "Advancements such as Artificial Intelligence (AI), data analytics, and automation are redefining traditional practices within the sector, emphasizing the need for adaptation to ensure efficiency, sustainability, and competitiveness in today's oil and gas landscape." He then proceeded to describe various digital transformation initiatives that PT Pertamina Hulu Rokan has implemented and plans to integrate.. One of the implementations is the smart condition monitoring & analysis modeling that is able to detect the equipment degradation earlier by applying similarity based multiple online variables correlation. The abnormal condition can be detected earlier based on the trend difference between model and actual. Thus, optimizing the maintenance schedule and potentially saving on costs and avoiding downtimes.Mr. Arnold Gabuco started the next session by mentioning the importance of artificial intelligence (AI) in streamlining tasks, processing large datasets, and optimizing production workflows. He specifically noted, "AI's ability to undertake complex tasks efficiently and with minimal errors can revolutionize the oil and gas industry, making it an indispensable tool for ensuring operational reliability and efficiency by preemptively addressing potential equipment failures."And in the last session of the event, Dr. Khanifar highlighted the pivotal role of advanced analytics and AI-driven technologies in enhancing oil fields, stating, "These innovations collectively contribute to informed extraction strategies, ensuring optimal operations and real-time optimization by controlling the high gas to oil ratio (GOR) in wells." The lecture covered critical aspects, including the Field Development Plan overview and the meticulous Well Selection process. The discussion focused on the detailed implementation of the AI-HGOR Pilot, where Dr. Khanifar emphasized the importance of GOR control for reshaping the oil extraction landscape. The Multi Rate Test (MRT) analysis showcased a reduction in oil production with an increasing GOR, while the Advisory Model's integration into the process control scope underlined the transformative significance of these technological advancements. The presentation concluded with a powerful statement, offering a glimpse into the promising future of the industry.Written by: Satria Rafif Rafidianto

The Society of Petroleum Engineers (SPE) ITS SC held an educational program called Energy4me for more than 20 science club members at Gloria Christian Junior High School. The program aimed to raise awareness about the importance of energy in life, increase understanding of energy and its implementation, and foster enthusiasm in the oil and gas industry.The PIC of the event Asri Dewayanti said Energy4me is an educational program that educates the public about energy and promotes energy consciousness. This program was developed by the Society of Petroleum Engineers to help students understand the science behind the industry and the career opportunities available. "We believe that energy is the most crucial and hot issue right now. Therefore, to increase the potential of the nation's resources, it is our responsibility as a youth to take the initiative to accommodate the discussion forum for sharing knowledge,” added Asri. The program that was held on March 15th included several experiments. One of the experiments was exploring oil seeps. Oil and gas seeps are natural springs where liquid and gaseous hydrocarbons leak out of the ground. These seeps are fed by natural underground accumulations of oil and natural gas. The activity modeled the formation and process of oil seeps. “The students learned how the density of oil and Earth's materials contribute to the process and any modifications that could be made to the model,” continued Asri.Another experiment was Pump it Up, where the students learned how oil and natural gas are pumped from the earth. There are two methods that can be used: primary recovery and secondary recovery. Primary recovery is when oil comes out due to its own pressure, while secondary recovery is when oil is pumped out by injecting natural gas or water into the formation. “In primary recovery, the students learned how to drill for oil with the help of a chemical reaction between bicarbonate and acetic acid,” explained Asri.The third experiment was Perforated Well Casing. Perforation refers to a hole punched in the casing, or liner, of an oil well to connect it to a reservoir of oil or gas. These holes in the good casing allow oil and gas to flow easily into the wellbore, increasing the production of a reservoir. The students learned about the differences in the production of a perforated and non-perforated well casing. “They also discussed the model limitations and ways to improve the experiment,” added Asri.Furthermore, Asri explained, the final experiment was Water Injection, where the students learned about oil drilling using the secondary recovery method of extracting oil by pushing it up with the help of water. The experiment showed how pumping water into a formation can push oil upwards. It demonstrated that more oil can be extracted when water is pumped in the same system or a different pipeline.Asri Dewayanti also emphasized the importance of energy literacy and the need to educate the public about energy. "Education is an effort to prepare future generations who are better, agile, and skilled. It fits perfectly with the need to develop people who have energy literacy and are interested in the oil and gas industry," said Asri.The event was also a part of SPE ITS SC's actualization of social responsibility with the community around and to achieve SDGs 4 Quality Education and 7 Affordable and Clean Energy. Through this collaboration, SPE ITS SC hopes to contribute to building an energy-conscious and educated society. “It was a great honor that we could collaborate with one of the Junior High schools around us in addressing this matter. We feel such events are crucial to maintaining an energy community for a better future,” ended Asri. By: Tyara Novia Andhin