Pertamina Internasional EP Exceeded Target of Breakthrough Project Cost Efficiency
On 21st February 2017, Pertamina Internasional EP (PIEP) has been rewarded in terms of contribution at Breakthrough Project (BTP) Upstream Cost Efficiency in 2016. BTP Upstream Cost Efficiency is established by corporate collaborated with upstream directorate in order to operational cost efficiency and also prioritize on profit at upstream subsidiaries.
PIEP analyzing and monitoring every plans and implementation of efficiency program in each PIEP assets monthly, consisting of Algeria asset, Malaysia asset, Iraq asset, and also any expenditures from head office. The main roles of BTP team are analyze, summarize, and justify every expenses from all assets, also seeking solutions for reducing operational cost in every elements of PIEP.
After running for a year, PIEP surpassed the target which is planned by the Upstream Directorate, where they targeting of 106 million US Dollar at PIEP and the company has reached 150 percent higher, which is 160 million US Dollar cost efficiency (based on BTP final report 2016). With this great result, PIEP contributes on successing the BTP upstream efficiency which also awarded at Pertamina Awards 2016 as Runner Up (2nd place) Best BTP. Moreover, PIEP became one of the Topic CIP (Continuous Improvement program) upstream directorate in Yogyakarta on 13th-18th December 2016, which is PIEP elected to send a representative (as a representation of Pertaminas’s upstream subsidiaries) and won the gold category also announced as 1st place in The Best Value Creation.
With the success of BTP cost efficiency, PIEP successfully increased their EBITDA which reflects the profitability of the company as well as raising Net Profit of the company. Indeed, the efficiency is not just about reduction on budget and facilities, but a change in mindset and paradigm of all stakeholders, also the management and all employees of PIEP, to run the business better and more sustainable. We all expecting in many years ahead that PIEP could be a pioneer throughout Pertamina’s upstream subsidiaries to running a modern business scheme by optimizing operational cost as low as possible but with maximum results and great outcomes.