JAKARTA - In the midst of rising world oil prices which have an impact on increasing fuel production costs, PT Pertamina (Persero) has carried out various efficiency programs. Until July 2022, Pertamina has succeeded in saving operational costs of around Rp. 6 trillion.
President Director of PT Pertamina (Persero), Nicke Widyawati said that the success could not be separated from the strategic cost-saving steps taken by the Pertamina Group since the beginning of the year.
The largest portion of fuel production is the cost of purchasing crude oil, which accounts for 92% of the Cost of Production. The investment in upgrading the Pertamina Oil Refinery, which has been carried out in the last 4 years, has succeeded in increasing the flexibility of crude oil. This means, if so far the Pertamina refinery has only been able to process certain crude oil which is expensive, then starting last year it has been able to process crude oil with a higher sulfur content which has many sources and is cheaper. This is Pertamina's strategic move that has succeeded in significantly reducing fuel production costs.
In addition, energy efficiency in all operational areas from upstream to downstream, also provides significant cost savings, while of course contributing to the reduction of carbon emissions.
Not only saving costs, Pertamina Group has also succeeded in increasing revenue by exporting high value-added products, such as HVO (palm-based D100) and Low Sulfur Fuel Oil. World demand for low carbon products continues to increase. With the refinery upgrading that has been carried out, Pertamina is currently able to produce these products, thereby capturing this very prospective opportunity. (LM)