Pertamina & Halliburton to Advance Well Construction & Stimulation in Indonesia | 2026

HOUSTON – Feb 22, 2026 – PT Pertamina (Persero), Indonesia’s state-owned integrated energy company, and Halliburton (NYSE: HAL) have entered into a memorandum of understanding (MOU) to accelerate the deployment of advanced well construction and stimulation technologies within Indonesia. The agreement focuses on enhancing production from both new and, crucially, mature onshore fields, leveraging technologies like multi-stage hydraulic fracturing and artificial intelligence.

The collaboration aims to revitalize Indonesia’s upstream oil and gas production. Pertamina, as the national energy company, is looking to increase “national lifting” – a term referring to crude oil production – and ensure a reliable energy supply for the country. The MOU signals a strategic move towards optimizing existing resources rather than solely focusing on new discoveries, a trend increasingly common as easily accessible reserves dwindle globally.

Advanced Technologies at the Core

The MOU outlines a broad scope of technological applications. Multi-stage hydraulic fracturing, often referred to as “fracking,” is a well stimulation technique used to increase the permeability of shale rock formations, allowing oil and gas to flow more freely. Acid stimulation, another technique, involves injecting acid into the wellbore to dissolve rock and improve flow. Halliburton will also contribute advanced cementing services, critical for wellbore integrity and preventing fluid migration.

However, the inclusion of “closed-loop automation and artificial intelligence capabilities” is particularly noteworthy. Closed-loop automation refers to systems that automatically adjust parameters during drilling and fracturing operations based on real-time data, optimizing performance without constant human intervention. Integrating AI allows for predictive modeling, identifying potential issues before they occur, and fine-tuning stimulation treatments for maximum effectiveness. This represents a shift towards data-driven optimization in the energy sector.

Revitalizing Mature Fields: A Key Focus

Simon A. Mantiri, President Director of PT Pertamina, emphasized the importance of this collaboration for the company’s “sustainable transformation of upstream production.” He stated, “With the support of advanced technology and global expertise, we are confident that mature fields can be revitalized and optimized to unlock their full potential, enabling the fields to, once again, be productive and contribute to national energy production.” This focus on mature fields is significant. Many oil and gas fields experience declining production rates over time. Applying advanced technologies can extend their lifespan and increase overall recovery rates, offering a cost-effective alternative to exploring entirely new areas.

Halliburton’s Expertise and Expansion in Indonesia

Halliburton, a global leader in energy services, brings decades of experience in unconventional resource development to the table. Martin White, senior vice president, Asia Pacific, Halliburton, highlighted the company’s approach: “Halliburton integrates proven unconventional methodologies with localized reservoir insights to improve performance, strengthen local capabilities, and deliver technology-based solutions that maximize asset value for our customers.” This suggests a commitment to tailoring solutions to the specific geological characteristics of Indonesian oil and gas reservoirs.

The MOU represents an expansion of Halliburton’s presence in Indonesia’s unconventional completions market. “Unconventional completions” refers to the techniques used to extract oil and gas from sources like shale, which require more sophisticated methods than traditional drilling. Halliburton’s emphasis on a “collaborative approach” suggests a partnership model where they work closely with Pertamina’s engineers and geoscientists to implement and refine these technologies.

The Broader Context: Indonesia’s Energy Needs and Global Trends

Indonesia is a significant energy consumer in Southeast Asia, and maintaining a reliable energy supply is crucial for its economic growth. While the country is also investing in renewable energy sources, oil and gas remain a vital part of its energy mix. Increasing domestic production through enhanced recovery techniques, like those outlined in the MOU, is a key strategy for reducing reliance on imports and bolstering energy security.

The partnership between Pertamina and Halliburton also reflects a broader trend within the energy industry: the increasing adoption of digital technologies to optimize operations and improve efficiency. The integration of AI and automation is becoming increasingly common in drilling, production, and refining, driven by the need to reduce costs, minimize environmental impact, and maximize resource recovery. The success of this collaboration in Indonesia could serve as a model for similar projects in other regions facing similar challenges.

Halliburton, founded in 1919, has established itself as a major player in the energy sector, providing a wide range of products and services throughout the asset lifecycle. The company’s commitment to innovation and sustainable energy solutions positions it as a key partner for national oil companies like Pertamina seeking to modernize their operations and meet evolving energy demands.