20240830_ELSA_Laporan Informasi dan Fakta Material_31719993_lamp1.pdf

Narahubung:
Jayanty Oktavia Maulina (Anty)
Manager of Corporate Communications
Graha Elnusa 16th Floor, Jl. TB Simatupang Kav. 1B, Jakarta 12560
Tel: (021) 7883 0850 | Fax: (021) 7883 0907 | Mob: +62813 1787 1717
E-mail: jayanty.maulina@elnusa.co.id


Press Release
      Elnusa Slurry Cement Development, Ready to
                   Reach Wider Market
Jakarta, 28 August 2024 – PT Elnusa Tbk (ELNUSA, IDX: ELSA) a subsidiary of PT Pertamina Hulu Energi (PHE) which is part
of the Pertamina Upstream Subholding, continues to develop innovations in the products and services offered to reach a
wider market. After the success of the previous Red and White Slurry cement innovation, the latest version of the special
formulation for cementing jobs designed to be able to close or block shallow gas zones and control well pressure is now
available again with more advantages, more economical prices with better technical performance, including: higher
compressive strength (ability to withstand pressure), slurry is easier to pump into the well.

In oil and gas well drilling activities, after the well is drilled, a casing/sheath will be installed. The challenge is that the casing
basically has no connection to the formation or rock behind it. This condition has the potential to make the casing vulnerable
to being lifted by pressure/flow of hydrocarbons or fluids from within the formation, therefore the casing needs to be
cemented with the appropriate slurry cement to close the potentially dangerous flow.

Since 2019, Elnusa has been developing Slurry Merah Putih, an innovation of slurry cement created by the nation's children.
It started from a problem encountered by one of Elnusa's clients, namely Pertamina Hulu Mahakam (PHM) in the Mahakam
Working Area (WK). It is known that the rocks in Kalimantan are mostly sandstone and coal which also contain gas. So when
drilling is carried out at a depth that is still shallow or shallow gas zone around 100-200 feet, there is a potential hazard due
to strong gas pressure. In these conditions, the Elnusa team provided a Total Solution by conducting research and finally
getting the Slurry Merah Putih formulation that could overcome this shallow gas zone problem.

Elnusa President Director Bachtiar Soeria Atmadja, revealed that the first innovation of Elnusa's Slurry Merah Putih has
been applied to 8 wells in the Tunu field, Mahakam Block. "This Slurry Merah Putih cement has provided extraordinary
added value for PHM. First, in terms of safety, it can be protected from the effects of the shallow gas zone which can be
dangerous. Second, in terms of cost, it can also reduce the cost of cementing which is cheaper than other products on the
market. Third, this is the work of the nation's children, an original Elnusa product by utilizing materials that are mostly local
products," said Bachtiar.

Successful with the initial innovation, Elnusa then developed the Slurry Merah Putih 2.0 concoction which is currently also
being utilized in 8 wells in the Mahakam WK, and will continue to grow. "Slurry Merah Putih version 2.0 has a price that is
15-20 percent more economical compared to the previous version. For its technical specifications, it is also superior to the
previous version by having a higher average compressive strength for the first 24 hours and has lower rheology so as to
reduce friction pressure and surface pressure, and obtain stability in lower rheology," explained Bachtiar.

The use of Slurry Merah Putih cement is also suitable to help increase oil and gas production. As is known, many oil and gas
fields are currently mature and their production tends to be depleted or decreasing. So that oil and gas companies have
started drilling wells in shallow zones that were previously rarely touched because the soil conditions contain coal, sand,
and there is potential for hazards. "Thanks to the Red and White Slurry innovation, drilling remains safe to do with higher
technical specifications, but remains economical," said Bachtiar.