Pertamina saves US$402.46 million amid rising global oil prices
JAKARTA, Sep 03, 2022 - (ACN Newswire) - State-owned oil and gas company PT Pertamina succeeded in saving operational costs of around Rp6 trillion (US$402.46 million) until July 2022 through several efficiency programs amid rising world oil prices that increased fuel production costs.
| PT Pertamina head office building (ANTARA/HO-PT Pertamina) |
She explained that energy companies around the world are facing difficult situations as a result of disruption of the global energy supply chain due to the Russia-Ukraine conflict. The global trade mobility leading to post-pandemic recovery was jolted by limited supply that led to an energy crisis.
The president director noted that the Indonesian government's policy of maintaining the people's purchasing power through fuel subsidies was the proper measure to accelerate economic recovery.
According to Widyawati, the accuracy of the policy is reflected in the fuel consumption increase for community mobility and business activities.
Pertamina President Director Nicke Widyawati stated that such a success could not be separated from strategic cost-saving measures taken by the company group since the start of this year.
She explained that energy companies around the world are facing difficult situations as a result of disruption of the global energy supply chain due to the Russia-Ukraine conflict. The global trade mobility leading to post-pandemic recovery was jolted by limited supply that led to an energy crisis.
The president director noted that the Indonesian government's policy of maintaining the people's purchasing power through fuel subsidies was the proper measure to accelerate economic recovery.
According to Widyawati, the accuracy of the policy is reflected in the fuel consumption increase for community mobility and business activities.
On the other hand, she also pointed out that the increase in fuel consumption had caused an increase in the burden of government subsidies.
"We understand the heavy burden of the government's fuel subsidy, and for that Pertamina carries out various cost-saving programs in order to help reduce the burden," she stated.
She remarked that the largest chunk of the company's cost of fuel production is for the purchase of crude oil, which accounts for 92 percent of the production costs.
Fortunately, investment in upgrading the Pertamina Oil Refinery, which had been conducted in the last four years, had succeeded in increasing the flexibility of crude oil availability.
It means, if so far, the Pertamina refinery has only been able to process certain crude oil that is expensive, but starting last year, it has been able to process crude oil, with a higher sulfur content, which is cheaper and can be gained from many sources," Widyawati stated.
This is Pertamina's strategic move that has succeeded in significantly reducing fuel production costs, she affirmed.
In addition, the company's energy efficiency efforts in all operational areas -- from upstream to downstream -- had caused significant cost savings while also contributing to a reduction in carbon emissions.
"The post-restructuring breakthrough, which is also significant to achieve Pertamina Group's efficiency, is the centralization of the procurement of goods and services, as well as the integration and optimization of all assets from upstream to downstream," she stated.
Apart from saving costs, the Pertamina Group has also succeeded in increasing its revenue through the export of high value-added products, such as HVO (palm-based D100) and Low Sulfur Fuel Oil.
By upgrading its refineries, Pertamina has currently been able to produce more low-carbon products whose demand had continued to increase, thereby capturing a very prospective opportunity in the midst of global demand for such a product.
"For Pertamina, cost savings are not just about cutting costs but also changing operating models and improving business processes, so that all company programs can be carried out and all targets are achieved, but at a lower cost," Widyawati stated.
"Pertamina will continue to make various efforts to save costs, which at the same time can reduce carbon emissions, thereby supporting the company's and national energy transition efforts," she said.
Contact: Fajriyah Usman, VP Corporate Communications, PT Pertamina (Persero) M: +62 858 8330 8686, Email: fajriyah.usman@pertamina.com, URL: https://www.pertamina.com Written by: Yuni Arisandy Sinaga, Editor: Rahmad Nasution (c) ANTARA 2022
Source: PT Pertamina Sectors: Environment, ESG, Alternative Energy, ASEAN
Copyright ©2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.
|
Latest Release
JCB enables JCB Contactless acceptance at Taichung MRT in Taiwan Apr 26, 2024 10:00 JST
| Mazda Production and Sales Results for March 2024 and for April 2023 through March 2024 Apr 25, 2024 18:21 JST
| MHI Begins Operation of SOEC Test Module the Next-Generation High-Efficiency Hydrogen Production Technology at Takasago Hydrogen Park Apr 25, 2024 17:45 JST
| GAC Honda to Begin Sales of All-new e:NP2, the Second Model of e:N Series Apr 25, 2024 16:50 JST
| Toyota Exhibiting at Beijing Motor Show 2024 Apr 25, 2024 16:25 JST
| Honda Reaches Basic Agreement with Asahi Kasei on Collaboration for Production of Battery Separators for Automotive Batteries in Canada Apr 25, 2024 11:10 JST
| UNIQLO Sponsors KAWS + Warhol Exhibition Tour, Starting in Pittsburgh Apr 25, 2024 09:00 JST
| Mitsubishi Power Begins Commercial Operation of Seventh M701JAC Gas Turbine in Thailand GTCC Project; Achieves 75,000 AOH To-Date Apr 24, 2024 17:19 JST
| MC and Denka Sign J/V Agreement in Fullerene Business Apr 24, 2024 17:02 JST
| Mitsubishi Motors Posts Record Sales in the Philippines in FY2023 Apr 24, 2024 13:56 JST
| NEC Develops High-speed Generative AI Large Language Models (LLM) with World-class Performance Apr 24, 2024 13:25 JST
| Fujitsu SX Survey reveals key success factors for sustainability Apr 23, 2024 10:25 JST
| Fujitsu and METRON collaborate to drive ESG success: slashing energy costs, boosting productivity with new manufacturing industry solutions Apr 22, 2024 16:09 JST
| NEC Strengthens Commitment to Space Industry with Investment in Seraphim Space Venture Fund II Apr 22, 2024 15:09 JST
| Soft Space Launches the First and Only JCB Payment Gateway in Malaysia Apr 22, 2024 15:00 JST
| TOYOTA GAZOO Racing takes a one-two in Croatian thriller Apr 22, 2024 10:47 JST
| First-ever Mazda CX-80 Crossover SUV Unveiled in Europe Apr 19, 2024 13:50 JST
| Fujitsu develops technology to convert corporate digital identity credentials, enabling participation of non-European companies in European data spaces Apr 19, 2024 10:17 JST
| Mitsubishi Heavy Industries and NGK to Jointly Develop Hydrogen Purification System from Ammonia Cracking Gas Apr 18, 2024 17:01 JST
| Toyota Launches All-New Land Cruiser "250" Series in Japan Apr 18, 2024 13:39 JST
|
More Latest Release >>
|