TOWARDS GLOBAL RECOGNITION BUSINESS PROFILE

Transcription

1 TOWARDS GLOBAL RECOGNITION BUSINESS PROFILE

2 INTRODUCTION As Indonesia s flagship national company that is engaged in a broad spectrum of upstream and downstream energy operations, Pertamina has increased productivity with more sustainable business performance. Today, we are gaining a stronger foothold in the sector, which sets us out to be a world-class energy giant. 08 OUR COMMITMENT 02 OUR PROFILE OUR PERFORMANCE OUR FUTURE 22 OUR PARTNER TOWARDS GLOBAL RECOGNITION 01

3 OURPROFILE Indonesia s Energy Powerhouse The fact that we are in the midst of exponential population growth comes with significance: rising living standards that causes the increase in energy demand. Due to that, the scale of the global challenge that the world faces is becoming greater. Whenever energy is used and managed, sustainability plays a vital role and helps to build continuous improvement. We believe that is the basis for working with responsibility. As the Indonesia s top-tier energy company, Pertamina is involved in a wide range of upstream and downstream oil, gas, geothermal, and other energy acts with operations in more than 5 countries. Pertamina is the first Indonesian company to be featured on the Fortune Global 500. Since 1957, our calling is to help Indonesia moving forward and to ensure the future of our nation by supplying energy to the Indonesian people. For over 50 years, we have grown with 21,405 employees, each playing an important role to answer the energy demands of Indonesia s population of more than 240 million. Our aim is to be a world-class energy company and our performance reflects our goals. In our accomplishment, we recorded an increase in total assets and revenue as well as production growth and business expansion. To reach the Year 2025 Aspiration to become the company that energizes Asia by 2025, we have laid the foundation by enhancing our operations and set assertive targets by increasing production of oil, gas and geothermal sector. In addition, we are also expanding gas infrastructure and developing alternative resources of new and renewable energy based on strong commercial values by embedding 6C to our Code of Conduct, which are Clean, Confidence, Competitive, Customer Focus, Commercial, and Capable. In line with these goals, we implement the long-term strategy of Aggressive in Upstream, and Profitable in Downstream, to explore and to produce essential resources of energy to meet the essential needs of millions of Indonesians. Henceforward, we are using our full suite of assets and capabilities to expose our self-determination and pursue our goal. We have a commitment to sustainable development and a proven track record in achieving tangible outcomes. Among others, we received numerous PROPER (Program for Pollution Control, Evaluation and Rating) awards from the State Ministry of the Environment for our environmentally feasible operations. 02 TOWARDS GLOBAL RECOGNITION

4 FACT & FIGURES Iraq Block 3 West Qurna 1 WD, Iraq Iraq Foreign Assets 6 REFINERIES 1, MBSD REFINING CAPACITY 88,647 sqm 2 E&P WORKING AREAS MORE THAN 5,000 GAS STATIONS (more than 4,500 with Pasti Pas Certification) Banda Aceh RU II Dumai/ Sei Pakning 170 mbbls/d Medan Non Singapore Import National Oil Fuel Supply and Distribution Network Total mbbls/d Domestic Oil Refinery Distribution Route Pertamina Depot Reloading Terminal Transit Terminal Floating Storage FSO Import Route Switzerland Nigeria Algeria Block 405A Algeria Italy Saudi Arabia Yaman South Africa China Afghanistan Nepal Dubai Oman Thailand Mauritius Bangladesh Singapore Foreign Assets Lubricant Export Areas East Timor South Korea Taiwan Myanmar Philippines Vietnam Malaysia Japan Australia Sumatra Jambi Kalimantan Samarinda Sulawesi Manado RU VII Kasim/Sorong 10 mbbls/d Palembang RU III Plaju 118 mbbls/d Import Jakarta RU VI Balongan 125 mbbls/d Java Import RU V Balikpapan 260 mbbls/d Makassar West Papua Semarang Surabaya Bali RU IV Cilacap 348 mbbls/d COUNTRIES OF 11OPERATION EXPLORATION & PRODUCTION Total Crude Oil Production (MMBO) 64,40 70,01 70,63 71,76 87,185 Total Natural Gas Production (BSCF) 502,05 532,8 5558,60 563,15 588,67 DISTRIBUTION 04 TOWARDS GLOBAL RECOGNITION TOWARDS GLOBAL RECOGNITION 05

5 BUSINESS PROCESS DOWNSTREAM UPSTREAM DISTRIBUTION THROUGH FUEL STATIONS AGENTS, AND OTHERS: KEROSENE, GASOLINE, DIESEL, HSD, LPG IMPORT OF RAW OIL AND REFINED OIL REFINED OIL GAS TRADING TRANSMISSION LPG Crown Block Rig PROCESS LPG Tanker LPG TERMINAL Kerosene EXPLORATION AND PRODUCTION DOMESTIC AND FOREIGN Crossover Cable DRILLING Avtur CRUDE OIL Refinery Process Continued HOMC Naphta Process (88-95) (LDMC) Swivel MARKETING AND SALES LNG REFINERY BLENDING Pertamax 95 Diesel Oil Travelling Block Gooseneck TRANSMISSION ROUTE Premium 88 Pertamax 92 LNG LNG SALES Mud Hose NATURAL GAS Wax LNG DELIVERY Standpipe Asphalt Press Pipe Information: Other Process Lube Base Oil Mud Pump STEAM Mud Tank Blowout Preventer Engine Cabel Drum POWER GENERATOR Pertamina Depot Shale Shaker ELECTRICITY Drill Floor ELECTRICITY DISTRIBUTOR POWER GENERATOR Conductor Pipe GEOTHERMAL Drill Bit Drill pipe Drilling Fluid Circulation Path COMPANY OPERATION KEY Fuel Station UPSTREAM PT Pertamina EP PT Pertamina EP Cepu PT Pertamina Drilling Services Indonesia Sumber: Pertamina 06 TOWARDS GLOBAL RECOGNITION Pertamina is involved in a wide range of activities from upstream to downstream, gas, geothermal, petrochemical and other energy operations. PT Pertamina Hulu Energi PT Pertamina Geothermal Energy PT Pertamina Internasional Eksplorasi dan Produksi ConocoPhillips Algeria Ltd NATURAL GAS PT Pertamina Gas PT Arun NGL* PT Badak NGL* (*) Pertamina s ownership over PT Arun NGL and PT Badak NGL is 55% each. Although owned by Pertamina, the companies cannot be classified as subsidiaries of Pertamina, because Pertamina does not hold control over them. DOWNSTREAM PT Pertamina Trans Kontinental PT Pertamina Retail PT Pertamina Lubricant PT Pertamina Energy Trading Ltd PT Pertamina Patra Niaga PHOTO: PERTAMINA; INFOGRAPHIC: ARDIANSYAH; EDITOR: ROSDIANA SITOMPUL TOWARDS GLOBAL RECOGNITION 07

6 OURCOMMITMENT World-Class Energy Provider Improvements and innovations in all operations are the driven power for Pertamina to move forward. As we evolved from a national oil and gas company to a world-class energy provider, we are determined to meet the growing energy demand while addressing social and environmental issues through our core business in hydrocarbon exploration, geothermal exploration and exploitation increase, and also refinery that produces fuel and other intermediate or end products. Furthermore, we streamline our operation through the provision of processing facilities, transportation, storage and commercialization. We run transportation of petroleum and natural gas, as well as their intermediate or end products. This includes the transport of natural gas through pipelines, above or below ground, as well as water transport for commercial purposes. Our commercial activities include purchasing, sale, export, and import. The list continues with the receiving, collection, storage and expenditure of our commodities, together with the development, exploration, production and trade of new and renewable energy. AGGRESSIVE UPSTREAM Pertamina maintains its sustainable growth through the execution of Aggressive Upstream strategy. Increasing production in the upstream operations contributes to the company s business and national interests. The upstream operations manage both domestic and overseas projects, focusing on exploring and producing oil and natural gas as well as Natural Gas Liquids (NGL), geothermal, non-conventional fossil energy, and new and renewable energy. PROFITABLE DOWNSTREAM Pertamina achieves more profitable margin through its reliable downstream operations for oil and gas products, which include refining, distributing, trading and marketing of oil, petrochemicals, and other energyrelated and alternative energy products. Refinery (6 refineries 1045 KBSD) Industrial Fuel (Kerosene, High Speed Diesel/Diesel/ Marine Fuel) Non subsidized Fuel Retail (Pertamina Dex, Pertamax/ Pertamax Plus) Aviation Business Lubricants LPG Petrochemical Subsidized Fuel Distributors (Kerosene, Premium, High Speed Diesel) Conversion Program, from Kerosene to LPG Marketing & Trading and Finance, includes: Procurement of Crude Oil and Products, Processing and Refinery Production, Product Sales and Availability of Cash Flow. For alternative energy, Pertamina aims at setting up its own biofuel refinery that will comprise 3 different types of fuels, namely Green Diesel, Bioavtur and Bioethanol. 08 TOWARDS GLOBAL RECOGNITION

7 GAS SECTOR Pertamina manages its gas business with an integrated approach from upstream to downstream. Our commitment to delivering the most favorable outcomes is generated through sustainable business achievements and satisfactory production capacities. Total gas transmission pipeline length of 1,615.3 kilometers, with total transmission capacity of 7,920 mmscf/d. Commenced the Arun LNG hub and regasification terminal as well as the Arun - Belawan gas pipeline and Gresik Semarang pipeline in the same year. Being the world s largest LPG carrier ship capable of supporting the distribution of LPG in Indonesia, executed through the presence of Pertamina 1 (2013) & Pertamina 2: with a payload capacity of 45,000 metric tons of LPG (each). MOVING TOWARD GLOBAL RECOGNITION Pertamina regards customer care, technology, trustworthiness and innovation as inseparable factors that not only drive the business beyond the competitions, but also place the company higher in the global energy sector. Strategic priorities demonstrated through aligning overseas operations with our long-term strategy that focuses on development and oil production, and developing the perfect selective Enhanced Oil Recovery (EOR) in order to increase the oil supply for our refineries. We are also developing capabilities in offshore drilling and operations as a main operator and establishing partnership with experienced operators while investing in exploration to increase the reserve to production ratio to above 100%, in accordance with the realization of yearly additional reserve findings, in which we have been maintaining the achievement of the target. Through the development of oil and gas resource management capability, and through the learning process, we have gained the courage and confidence as a competitive advantage as well as understanding the importance of business networking and strategic business growth that should be developed in a business-to-business scheme. With strong commercial principles, we are optimistic about managing our investments and at the same time, managing risks. AN ENCOURAGING WORKING ENVIRONMENT Pertamina s human capital makes up one of the most essential elements in the company s activities. They are the energy that enables the company to maintain the expected high quality standard in its upstream and downstream activities. We consider occupational health, safety and security, as well as environmental protection as the company s primary concern toward employing its best industry practice. Thus, we implement the best standard practices of Health, Safety, Security and Environment (HSSE). We observed all of the management aspects of HSSE as an absolute investment required to achieve the company s vision to become a national world-class energy company. The important contribution is made by the employees most effectively through the establishment of a health and safety culture within the company that integrates health and safety into everyone s roles. We also constantly fulfill our contribution to the criteria for HSSE Excellence including a rating for PROPER-KLH or environmentally feasible operations assessment that is no less than GREEN, and HSE Management System Implementation Audit of ISRS version (International Sustainability Rating System)- DNV that is assessed as Excellent. 10 TOWARDS GLOBAL RECOGNITION TOWARDS GLOBAL RECOGNITION 11

8 OURPERFORMANCE Unlocking potential through integration Pertamina is consistently improving its business performance. As demonstrated, we succeeded in achieving an overall increase of almost double financial performance in every year. With this achievement, we have succeeded in maintaining positive financial performance for the past five years in which the company s net profit jumped by almost 97 percent over the last five years. Our improved business performance has partly been generated by taking a variety of initiatives that we have taken, especially with regard to our upstream, downstream, refinery, marketing, and gas businesses. UPSTREAM SECTOR An aggressive upstream initiative, either domestic or overseas, has led to the increase in the company s oil and gas output by 7% average in the last 5 years. This illustrates our commitment to maintaining the continuity of energy supply for domestic consumption in Indonesia in order to become one of Asia s leading powerhouses. Pertamina s upstream business, which is conducted in several regions in Indonesia and overseas, includes exploration and production activities. OVERSEAS EXPANSION Apart from optimizing exploitation activities in the domestic fields, Pertamina aggressively expands its business overseas as a way to increase its reserves and boost the overall output of production. The overseas expansion partly aims to achieve the company s aspirations to become an international player in the world s hydrocarbon industry. With our World Class Energy Company vision, we keep expanding beyond our current international portfolio: Murphy Oil, Malaysia We have acquired a 30% participation interest in Murphy Oil and boost more our exposure in Malaysia Block 405A, Algeria We have acquired 65% participating interest and became the operator in the Menzel Field, as well as a 3.7% stake in the Ourhoud Field and 16.9% in the EMK Field. Thus, from Block 405A, additional production of 23,000 BOPD was obtained. TOWARDS GLOBAL RECOGNITION 13

9 Block SK-305, offshore Malaysia We have a 30% participation in Block SK-305 offshore Sarawak, Malaysia. The 2013 production amounted to an average of 232 BOPD and 1.2 MSCFD subsequently we aim to have the increased numbers of production in the next following years. Block 10 & 11.1, offshore Vietnam The FEED Study and FDP in Gau Chua and Ca Cha have been carried out, and drilling of one (1) exploratory well is being performed. Block 3, offshore Qatar The GGR final study and final audit by PHE have been implemented. Block West Qurna, Iraq We have successfully completed the acquisition of 10% participating interest in Block West Qurna 1, Iraq. DOWNSTREAM BUSINESS Being aggressive in improving the upstream business, Pertamina has also taken strategic strides in its downstream business and other oil-and-gas related businesses, including lubricant, aviation, refinery, drilling and shipping services, etc. The strategic initiatives in the downstream sector have considerably contributed to the company s overall business performance. We not only maintain our market domination for non-subsidized fuels and lubricants in the domestic market, but are also expanding our market coverage for other products, such as providing aviation fuels, lubricants and fuels to the foreign market. The lubricant exports have penetrated to 24 countries. At the same time, we continue to maintain domination in the domestic market that reaches 60% of the market share. In the way of becoming a world-class company, Pertamina Shipping has also prepared ships for transporting Saharan Crude produced in Pertamina s Block 405A in Algeria. In fuel transport fleets, we have been strengthened by the presence of several new ships, including one VLGC (Very Large Gas Carrier) unit, the largest LPG carrier ship in the world, which will be used for the distribution of LPG in Indonesia. Our Marketing and Trade division was successful in maintaining the supply of subsidized fuels as well as in increasing the sales volumes of nonsubsidized fuels and non-fuel products, especially of our lubricant products, which also have become more visible in the overseas markets. 14 TOWARDS GLOBAL RECOGNITION

10 REFINERY BUSINESS Pertamina owns and operates 6 refinery facilities in refineries is more than one million barrels stream day Our refineries process domestic and imported crude Operational performance achievement of our refinery Aviation Fuel, paraxylene and benzene) on intake. is lower than in the previous years. Consistently, our gas Indonesia, namely Refinery Unit (RU) II Dumai, RU III (MBSD), making Pertamina the largest company with oil into a variety of fuel (BBM) and non-fuel products shows a positive trend. The parameters are indicated Improvement in the refinery s operational performance, trading activities in 2013 were increased by 147%. Plaju, RU IV Cilacap, RU V Balikpapan, RU VI Balongan refinery assets in Southeast Asia and the fifth largest consisting of LPG, propylene, solvents, petrochemical by the increase of yield valuable product (Premium, showed by the PAF (Plant Availability Factor) with a We estimate that our gas trading will continue to grow and RU VII Sorong. Total installed capacity of these in Asia. products, and lube bases products. Pertamax, Pertamax Plus, Kerosene, Diesel, Pertadex, Total Downtime for refinery maintenance in 2013 that following completion of several gas infrastructure projects. 16 TOWARDS GLOBAL RECOGNITION TOWARDS GLOBAL RECOGNITION 17

11 Building a sustainable future Pertamina sees promising business outlook in increasing the production and exploring new reserves. With more accomplishments, from revenue generation and production capacity to corporate governance and social responsibility, Pertamina is on the track toward achieving the goal to becoming a Fortune 100 company by Aside from obtaining more in the future benefits of the company s existing production fields, we are gradually bringing in the untapped, huge potential of new and renewable energy (NRE) resources. We are integrating NRE into our existing businesses. Notwithstanding the exploitation of the potentials of new and renewable energy (NRE), we also focus on the development of geothermal energy. We see excellent prospects for this expansion, looking at the fact that Indonesia is a country with huge geothermal energy potentials. There are indeed a huge amount of untapped sources in both NRE and geothermal energy. Through UTC (Upstream Technology Center), we conduct research and development as well as knowledge up-skilling to become the company s focal point for identifying, prioritizing, and coordinating research. TOWARDS GLOBAL RECOGNITION 19

12 FRIENDS OF THE EARTH COMMUNITY DEVELOPMENT Pertamina always believes that the synergy of Corporate Social Responsibility (CSR) activities and business performance plays a crucial role in building a sustainable future. Our success is also defined by the company s commitment to consistently improving initiatives program with the objective to encourage social and economic empowerment, while meeting the expectations of its employees, communities where we operate, and no less important, the social aspects as well. Determined to become a good National company, we ensure that a success is not merely the achievement of financial gains. Establishing a stronger basis in the CSR best practices is an important key by integrating corporate development and social contribution. We will continue to take a long-term view of our business, where the benefits, health and safety of our people and our environment performance, remain the top priorities for us. The community involvement and empowerment program as a form of Company Social Responsibility focused in 4 (four) pillars, which are Pertamina Green, Pertamina Health, Pertamina Bright and Pertamina Ecopreneur. 20 TOWARDS GLOBAL RECOGNITION TOWARDS GLOBAL RECOGNITION 21

13 OURPARTNERS We believe in sharing benefits of value creation process Pertamina shares benefits of value creation process with shareholders and the Indonesian government, establishes partnerships with other business entities, and collaborates with universities to improve education and applied technologies. We also work hand-in-hand with NGOs, customers, suppliers, and local communities on the way to meet our corporate social responsibility by giving back to the communities where we operate our businesses and explorations. 22 TOWARDS GLOBAL RECOGNITION

14 AWARD The awards and recognition we have received are a testament of our actions of giving back to the society and environment. HEAD OFFICE PT PERTAMINA (PERSERO) Jl. Medan Merdeka Timur 1A Jakarta Indonesia Tel: , (86 lines) Fax: , Website: Contact Pertamina MDG s Award 2014 for Small Business Empowerment, Tree plantings in unproductive areas and Improving toddlers and children s health. Asia Responsible Entrepreneurship for Southeast Asia 2014 for Wanasari Bali Ecotourism (ranked first for the category of Social Empowerment) Social Empowerment Award 2014 by Enterprise Asia Corporate Social Responsibility Award 2014 by Corporate Governance Asia Global CSR Award 2014 by Pinnacle Group International Global CSR Awards 2013: Environmental Structuring Area Responsible Business Awards 2013 (AREA): Responsible Business Award and Health Promotion Award Social Business Innovation & Green CEO Awards 2013: Social Business Innovation and Green CEO 24 TOWARDS GLOBAL RECOGNITION

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