Will PEP's Efficiency Efforts Succeed in Maintaining Production?

PT Pertamina EP (PEP) is trying to maintain oil and gas lifting and production performance in the second quarter of this year not to be much different from the first quarter. Therefore, the subsidiary of Pertamina implements efficiency measures amid the plummeting global oil prices and the Covid-19 pandemic. "From the contract renegotiation, part of it can be discounted. Utilizing used materials that are still in good condition and transferring assets from KKKS [other contractors of cooperation contract]," Pertamina EP President Director Nanang Abdul Manaf said on Thursday (5/14).

As part of efficiency efforts, the company also uses small rigs or self-owned hoists and reduces contract rigs from other companies. As a result, Nanang claimed, Pertamina EP's oil and gas lifting and production are still on target or the same as the first quarter. This efficiency effort will run until the end of this year while awaiting the development of oil prices and the Covid-19 pandemic.