Halliburton Teams Up With Pertamina to Boost Indonesia's Energy Output

Halliburton HAL, a major global oil and gas equipment and services company, has formed a new partnership with Pertamina, Indonesia’s state-owned energy company. The two companies signed a memorandum of understanding (MOU) to bring advanced well construction and stimulation technologies to Indonesia. The goal is to improve oil and gas production, especially from older onshore fields that are becoming less productive.

What This Partnership Means

This collaboration is an important step for Indonesia’s energy sector. Halliburton and Pertamina plan to use modern techniques, such as multi-stage hydraulic fracturing, acid stimulation and advanced cementing services. These methods can help extract more oil and gas from existing wells and improve overall drilling and fracturing performance.

The companies also want to go beyond traditional approaches. They are exploring the use of automation and artificial intelligence (AI) to make operations faster, safer and more cost-efficient. These tools can help monitor wells in real time and automatically adjust processes to improve outcomes.

How These Technologies Contribute

Hydraulic fracturing, often called “fracking,” is widely used to release oil and gas trapped underground. Multi-stage fracking allows companies to target more parts of a reservoir, boosting production and extending the life of oil fields.

Acid stimulation is another technique that can boost production. It works by injecting acid into the well to remove mineral blockages and improve the flow of oil and gas. This is especially useful for older fields, which Indonesia has in large numbers.

Halliburton’s experience in these areas could help Pertamina unlock more value from its existing assets and reduce the need to explore entirely new fields.

The Role of AI and Automation

The partnership emphasizes AI and automation, which can rapidly process large data sets, helping companies enhance decision-making and operational efficiency.

Closed-loop automation, for example, can automatically adjust operations based on real-time data. This reduces human error, enhances safety and (may) lower costs. Over time, it could make Indonesia’s energy production more reliable and efficient.

Advancing Indonesia’s Energy Objectives

Indonesia wants to increase its domestic oil and gas output and reduce reliance on imports. This partnership fits into that broader strategy. By improving production from mature fields, the country can strengthen its energy security and support economic growth.

Pertamina sees this collaboration as a way to modernize its operations and adopt global best practices. At the same time, working closely with Halliburton will help train local workers and build technical expertise in the country.

Long-Term Impact

By combining Halliburton’s global technology with Pertamina’s local knowledge, the companies aim to transform Indonesia’s oil and gas industry. The partnership could increase production, improve efficiency, and extend the life of aging fields.

Over time, this effort may also set a new standard for energy development in Southeast Asia. If successful, it could help Indonesia meet its growing energy needs while moving toward a more sustainable and technology-driven future.

Bottom Line

The Halliburton–Pertamina partnership is about using modern technology to get more energy from existing resources. It highlights the growing importance of innovation, automation and collaboration in the global energy sector. As the project moves forward, it could play a key role in strengthening Indonesia’s energy supply and long-term independence.

HAL's Zacks Rank & Key Picks

Currently, HAL has a Zacks Rank #3 (Hold).

Investors interested in the energy sector might look at some better-ranked stocks like TechnipFMC plc FTI  and USA Compression Partners USAC, both sporting a Zacks Rank #1 (Strong Buy), and Oceaneering International, Inc. OII, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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