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Since 2021, all entities of Pertamina managing Oil & Gas Upstream Industry have been merged into Pertamina Upstream Subholding, and PT Pertamina Hulu Energi (PHE) has been appointed as the main shareholder. PHE today is managing 99 entities, 65 oil and gas blocks and more than 700 structures. In 2024, PHE's contribution to national lifting is 68% oil and 33% gas.

The large operational scale means that PHE requires comprehensive direction and portfolio management, to formulate appropriate operational strategies and business management. This is vital especially for decision makers, and so portfolio mapping is carried out.

PHE prepared a Long-Term Plan for each Structure based on technical or contract limits, including production forecasts, exploration and development projects, operating and investment expenditure, etc. The economic value of each Block is then calculated referring to the Long-Term Plan profiles.

PHE then carried out portfolio mapping referring to the Block's economic results, by grouping each Block based on its economic value. Grouping is comprised into 4 clusters starting from Very Healthy areas in Cluster 1 to Critical areas in Cluster 4. The lowest cluster limit referred to the economic value of blocks with a value of "X".

The results of the portfolio mapping- then provided recommendations to Directors for each block management. Cluster 1 and Cluster 2 will focus on investment, exploration and development. Cluster 3 will focus on partnerships or fiscal improvement. Cluster 4 will focus on optimizing operation and business streamlining.

From portfolio mapping, PHE has made efforts to increase Cluster 4 value several times higher. This through activities called Nawasena Project, with massive involvement from all functions, proving the effectiveness of portfolio mapping.

This is intended to share knowledge and experience related to the upstream oil and gas portfolio, with the hope of providing additional reference for oil and gas practitioners.