SKK Migas targets the end of November

 

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) targets that drilling in the Rokan Block will begin next month. SKK Migas Operations Deputy Julius Wiratno said that currently, PT Chevron Pacific Indonesia (CPI) is still converting two units of rigs to be used for drilling.

Blogger Agus Purnomo in SKK Migas

In addition, CPI has procured several service jobs that support drilling activities. Julius said SKK Migas and CPI continued to make efforts so that the drilling activity could begin in November according to the agreement.

PT Chevron Pacific Indonesia (CPI)

"The target is the end of November," he said.

Sonita Purnomo

When confirmed, the CPI was still reluctant to explain the details of drilling preparations that will begin next month. CPI Corporate Communication Sonita Purnomo said that her agency continues to have intensive discussions with SKK Migas before starting the drilling.

"PT CPI continues to have intensive discussions with SKK Migas to finalize the detailed implementation of the heads of agreement to support the commencement of drilling activities," She said.

the Rokan block by Chevron

SKK Migas and CPI have agreed on ahead of agreement (HoA) on September 28, 2020, for investment in the transition period for the Rokan work area (WK). CPI will remain investing in 2020-2021. This investment is an effort to increase production in the Rokan block working area during the transition period before being transferred to the management of PT Pertamina (Persero) in August 2021.

Bisnis Indonesia, Page-5, Saturday, Oct 31, 2020

Drilling of the Rokan Block well has the potential to be delayed to December

 

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that the drilling of wells in the Rokan Block will be carried out in late November or early December. Currently, rig procurement is underway.

Blogger Agus Purnomo In SKK Migas

    Deputy for Operations of SKK Migas Julius Wiratno said that the government and PT Chevron Pacific Indonesia (CPI) had signed the main agreement for the implementation of operations during the transition period of the Rokan Block. Currently, Chevron is preparing a rig that will be used to drill this well, along with its supporting service contracts.

the Rokan Block

"At the end of November or early December, drilling will be carried out in the Rokan Block," he said.

PT Chevron Pacific Indonesia (CPI)

    According to Julus Wiratno, the rigs that are currently available are rigs that are usually used to workover wells. As a result, Chevron needed time to convert the rig to be used for infill well drilling. However, as planned, 11 wells will be drilled in 2020.

"After that in 2021, about 6 rigs will be added to carry out drilling. After that, PT Pertamina (Persero) will continue in August 2021, "added Julius.

Dwi Soetjipto

    Head of SKK Migas Dwi Soetjipto explained that the total investment for drilling wells in the Rokan Block in 2020-2021 is around the US $ 154 million. In detail, Chevron will drill 11 wells in 2020 and 107 wells in 2021. This year, the annual average additional oil production from this drilling is only 500 barrels per day (BPD).

"But in 2021, additional production will reach an average of 5 thousand bpd," he said.

    He emphasized that his party is focused on overseeing the implementation of the transfer of management of the Rokan Block from Chevron Indonesia to Pertamina as well as possible. One of them is the process of procuring goods and services, in which out of the 19 procurement packages needed, 10 packages have been contracted.

"SKK Migas will conduct supervision," said Dwi.

    Regarding Pertamina's potential partners in managing the Rokan Block after August 8, 2021, Dwi did not answer because it was Pertamina's authority. However, until now, he admitted that he had not received a report from Pertamina regarding his potential partner.

"We focus on securing the stage when Pertamina enters, with a better level from the production side," he said.

Arifin Tasrif 

    Previously, Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif reminded Chevron and SKK Migas to realize the provisions agreed upon in the HoA. This is because the implementation of this provision will have an impact on efforts to achieve the national oil and gas production target next year according to the 2021 APBN macro agreement.

"We will continue to monitor its implementation periodically to ensure the commitment of all parties goes according to the agreement, especially the certainty of the implementation of drilling activities which will start in November 2020," said Arifin.

    This year, the Rokan Block is targeted to produce 170,000 bpd of oil. Until the end of last June, the realization of this block's oil production was recorded to have exceeded the target, reaching 176,298 bpd. However, this realization fell when compared to production in 2019 which reached 190,131 thousand bpd. The Rokan Block is the second-largest oil producer in Indonesia.

Investor Daily, Page-10, Friday, Oct 30, 2020

Pertamina is considering PLN's electricity offer for the Rokan Block

    PT Pertamina (Persero) is building communication with various parties for the operational preparation of the Rokan block working area, including the provision of electricity and steam which are indispensable in supporting the continuity of oil production activities. One of them is the State Electricity Company (PLN).

the State Electricity Company (PLN)

    Pertamina SVP Corporate Communication & Investor Relations Agus Suprijanto said that oil production currently reaches 170,000 barrels of oil per day (around 25% of national oil production). He revealed that PLN had submitted an initial offer to Pertamina regarding the provision of electricity and steam.

"Pertamina welcomes PLN's desire to provide electricity and steam supply for the Rokan block working area starting August 9, 2021. By cooperating with BUMN in the electricity sector, we hope that the preparation of post-management transfer of electricity and steam supply will remain safe. PLN together with PHR will conduct intensive discussions regarding this matter in the near future, "said Agus.

the Rokan Block Work Area By Chevron

    Currently, the Rokan Block Work Area receives electricity and steam supply from an integrated power system which includes 3 main power generation facilities, namely Minas Gas Turbine, Central Duri Gas, and North Duri Cogen (NDC). 

    Regarding PLN's offer to provide electricity and steam in the Rokan block Work Area, Agus said that currently Pertamina has submitted a response and is waiting for a further proposal from the power company and hopes that the discussion of the Electricity and Steam Sale and Purchase Agreement with PLN will go well and signed in November 2020.

"Synergy among energy SOEs do not only increase portfolios that mutually reinforce operational performance in each business sector, but also hopefully encourage the government's strategic development projects to run well according to the expected target," said Agus.

Investor Daily, Page-10, Friday, Oct 30, 2020

The Efficiency of the Rokan Block Oil Pipeline Project

    PT Perusahaan Gas Negara Tbk (PGN) has made the efficiency of the oil pipeline project in the Rokan Block a new standard for infrastructure projects it undertakes, especially in implementing National Strategic Projects (PSN). 

    President Director of PGN Suko Hartono stated that the PGN Group is committed to striving for the best support for PT Pertamina's Oil and Gas Holding so that the transition process for the management of the Rokan Block runs smoothly and can increase the achievement of financing efficiency.

The Rokan Block

    In principle, the Rokan oil pipeline project is an effort to boost efficiency in Indonesia's energy budget, in line with the government's efforts to reduce oil imports. In addition, the Rokan Pipe project is an effort to support the Government's program in increasing the lifting and effectiveness of oil distribution from the Rokan Block, which is the backbone of national petroleum production, as well as one of the largest oil blocks in Indonesia.

    With competence in developing oil and gas infrastructure and distributing energy both natural gas to all sectors, PGN seeks to improve the effectiveness and efficiency of energy distribution. The Rokan oil pipeline is one of the biggest energy projects this year which has successfully implemented a budget efficiency of Rp 2.1 trillion.

    This is in line with pandemic conditions that require a high level of efficiency in the implementation of investment and operation activities. In addition, the Rokan oil pipeline project also involves 60% of local workers, so that it can provide great benefits to the surrounding community for economic recovery during the pandemic. The estuary of this investment operation is also aimed at driving the wheels of the regional and national economy.

"Regarding the selection of partners and partner schemes for the Rokan Oil Pipe Construction Project, the process is still under internal review by Pertagas as a subsidiary of PGN. PGN as the parent and Subholding Gas is committed to the implementation and completion will be on time. As for project implementation, it is adjusted to the ongoing process, and in accordance with project implementation rules. We appreciate the attention of many parties regarding this national strategic project to take place immediately and we ensure that the project preparation process is nearing its final stage so that it can be implemented immediately, "said Suko Hartono.

    Suko explained that the financing scheme for the Rokan Pipe construction project had been carried out in accordance with a study of the economic principles of a project. The review process is carried out in accordance with internal procedures that have involved elements of the Board of Directors and Board of Commissioners by prioritizing GCG principles.

    PGN is open to safe reporting through a whistleblower mechanism if there are things that are not in accordance with the principles of GCG in the company. With this mechanism, the reporter is guaranteed protection if he finds or suspects non-transparent activity at PGN. 

    Reporting obtained from the Whistle Blowing System (WBS) mechanism will receive attention and follow-up, including the imposition of appropriate penalties or sanctions in order to provide a deterrent effect for perpetrators of violations and for those who intend to do so. PGN opens access to reporting on actions that are detrimental to the company/environment/community through https://wbs.pgn.co.id

Investor Daily, Page-10, Thursday, Oct 22, 2020

PGN Supports the Regional and National Economy in the Rokan Oil Pipe Project

    The PT Perusahaan Gas Negara Tbk (PGN) group is committed to providing the best support for the Oil and Gas Holding of PT Pertamina (Persero) so that the transition process for the management of the Rokan Block runs smoothly and can increase the achievement of financing efficiency. This was done through the implementation of the Rokan Oil Pipe National Strategic Project (PSN).

    In the construction of the Rokan Oil Transmission Pipe, PGN is targeting to have a positive impact on regional development. This is because the development of this national strategic project involves more than 60% of the scope of construction and local manpower.

"With the development that involves local resources, it is hoped that the multiplier effect will be able to contribute significantly to increasing human resource capacity and transfer of knowledge in the regions," said PGN President Director Suko Hartono.

    According to Suko, empowering local entrepreneurs and workers also supports the economic empowerment of local communities during times of crisis. Then the knowledge transfer that is expected to occur can provide benefits in human resource management, especially in the aspects of technological and commercial understanding in the construction of the Rokan Oil Pipe.

"The construction of the Rokan Oil Pipeline Project is a strategic project that is full of risks and costs a lot, so it requires increased mastery of technology and a good understanding of the commercial aspects. These two aspects are the main benchmarks so that the results can be optimal and provide broad benefits, "added Suko.

    Through PT Pertagas as the executor of the construction, cooperation has been made in the procurement of steel pipe material for the Rokan Oil Pipe with PT Krakatau Steel. From this collaboration, it is targeted to reduce the cost of material procurement by 16% and provide added value to the domestic steel industry because it is an effort to increase the use of domestic products (P3DN).

the Rokan by Chevron

"In principle, the construction of the Rokan Oil Pipe is an effort to boost efficiency in the energy budget in Indonesia, in line with the government's efforts to reduce oil imports. "With a Capex value (capital expenditure) of US $ 300 million, the efficiency optimization obtained is the US $ 150 million or around Rp 2.1 trillion, because the initial Capex allocation value was the US $ 450 million," said Suko.

PT Chevron Pacific Indonesia (CPI)

    This project was built to maintain the resilience of energy production after transferring the management of the Rokan Hulu Block from PT Chevron Pacific Indonesia (CPI) in 2021.

"The PGN group as Pertamina's Subholding Gas is committed to being part of the solution for national energy fulfillment. With our competence in developing oil and gas infrastructure and distributing energy both natural gas to all sectors, we strive to improve the effectiveness and efficiency of all energy supply chains. In addition, the implementation of investment operations is always aimed at moving the wheels of the regional and national economy, especially in a very challenging period during the current pandemic economic recovery, "said Suko.

Investor Daily, Page-10, Monday, Oct 19, 2020

SKK Migas Optimistic that Oil and Gas Block Increase

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) is optimistic that oil and gas production from the 13 oil and gas blocks whose contracts expire in 2020-2022 can be increased in the future. 

Blogger Agus Purnomo in SKK Migas

    This is because the work program to be carried out also increases along with the transfer to a new operator.

Dwi Soetjipto

Head of SKK Migas Dwi Soetjipto said, there was an increase in the work program in terminated oil and gas blocks in line with the certainty of a contract extension that had been given by the government. With the increase in this work program, his party projects that oil and gas production in this termination block can increase.

"The crucial period in 2021, oil and gas production must increase in the following year. This is in line with the vision of a production target of 1 million barrels per day (BPD) or a total of 3.2 million BOPED (barrel of oil equivalent per day/barrel of oil equivalent per day) in 2030, "he said.

Referring to SKK Migas data, the 13 oil and gas termination blocks are estimated to reach a low of around 250 thousand BOEPD this year and stay in the same range next year. Next, oil and gas production is projected to start increasing in 2022 and reaching more than 300 thousand BOEPD in 2023. The amount of oil and gas production is estimated to last until 2027 and again increase in 2028.

His party has prepared a number of strategies to maintain oil and gas production in the 13 termination blocks. In the short term, the increase in production is carried out through additional development drilling activities, as well as workover and well service.

"Drilling has a drastic increase from 2020 to 2025, as well as workover. Well service has also increased slightly, "Dwi explained.

Meanwhile, the Firm Work Commitment (KKP) promised by the operator will be used to increase oil and gas production in the medium and long term through exploration and enhanced oil recovery (EOR).

"The total KKP fund is the US $ 1.17 billion. We will also accelerate KKP activities if possible, "said Dwi.

Of the total KKP funds, Dwi explained, the US $ 782.7 million was budgeted for exploration activities. In detail, these funds will be used to carry out 41 G and G studies, 2,150 kilometers (km) of 2D seismic, 3,050 square kilometers of 3D seismic, and drilling of 70 exploration wells. Furthermore, the EOR budget is US $ 386.8 million which includes the implementation of two EOR studies and 9 EOR pilot projects.

Another thing that also determines the future production of termina block oil and gas is the transfer of management of the Rokan Block. His party and Chevron Indonesia have agreed to start investing in Well drilling during the transition period this November. This step is necessary to curb the rate of decline in production in the oil and gas block, which is the second-largest oil producer in Indonesia.

"In the previous 2019-2020, there were no drilling plans, except for this November. In 2021, there are 200 wells to be drilled, 112 wells from Chevron, the rest will be continued by Pertamina after August 2021, "Dwi explained.

However, Dwi noted there are a number of things that must be considered in maintaining the termination block oil and gas production. One of them, in increasing oil and gas production by adding activities, economic factors will be a challenge for oil and gas companies. Therefore, the decision to provide incentives is also important.

"Other things are the execution of the work plan, the schedule on stream which is on time, and the best effort to carry out the drilling," he said.

The 13 oil and gas blocks whose contracts expire in 2020-2022 are Block South Jambi B, Makassar Strait, Brantas, Salawati, Malacca Strait, Bird's Head, Bentu, Selat Panjang, Rokan, Tarakan, CPP, Tungkal, and Sengkang. 

Chevron

    The operators of 13 oil and gas blocks have successively switched to Jindi South Jambi B, Chevron Makassar Limited, Minarak Brantas Gas, Petrogas (Island) Ltd, EMP Malacca Strait, Petrogas (Basin) Ltd, EMP Bentu, Sumatra Global Energi, PT Pertamina Hulu Rokan. , PT Medco E&P Tarakan, PT Bumi Siak Pusako, Montd'Or Oil Tungkal Ltd, and Energy Equity Sengkang.

Investor Daily, Page-9, Saturday, Oct 3, 2020

Pertamina Selects Partners to Manage the Rokan Block

    PT Pertamina (Persero) continues to select potential partners who will participate in managing the Rokan Block. PT Chevron Pacific Indonesia's contract in the Rokan Block will expire on August 9, 2021. Pertamina Hulu Rokan will replace Chevron as the operator of the Rokan Block.

PT Chevron Pacific Indonesia's

    Currently, the Rokan Block production is around 170,000 barrels per day (BPD). Director of Pertamina Hulu Rokan, R. P. Yudantoro, revealed that the process of looking for partners had not actually started. However, there are already companies that are interested in partnering with Pertamina.

The Rokan Block

"What already exists, several companies have sent letters of interest through Pertamina (Persero)," said Yudantoro.

    Even so, he did not want to specify which parties had proposed interest in jointly managing the Rokan Block. 

Fajriyah Usman

    Vice President for Corporate Communication of PT Pertamina, Fajriyah Usman, was reluctant to comment further regarding Pertamina's plans to seek partners. The reason is, currently, Pertamina's focus is to prepare a transition process towards the transfer of management in August next year.

"Pertamina Hulu Rokan is currently focused on preparing the transition process, ensuring operations in August 2021 will continue to run well," said Fajriyah Usman.

    Preparation Also includes rig procurement. Currently, the data transition related to exploration and exploitation, especially contracts and vendors from Chevron Pacific Indonesia, is considered to make the transition easier. 

    Pertamina Hulu Rokan targets to be able to drill 44 wells after the transfer of management of the Rokan Block later. Yudantoro said the rig procurement was being prepared.

"There will be five to six rigs to drill new wells during the four months (since the transfer of management)." Yudantoro said.

    The transfer of management letter has been issued by the Ministry of Energy and Mineral Resources (ESDM) on August 6, 2018. Its content is to give 100% management of the Rokan Block to Pertamina on August 9, 2021. Pertamina will pay a signature bonus of US $ 783 million or Rp. 11.3 million. trillion. The exact commitment is the US $ 500 million.

Blogger Agus Purnomo in SKK Migas

    To streamline the drilling process, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) together with Chevron Pacific Indonesia has signed ahead of agreement (HoA) Rokan Block on September 28, 2020. 

Dwi Soetjipto

    Head of SKK Migas Dwi Soetjipto said this signing was to ensure The continuation of Chevron's investment in the Rokan Block until management is transferred in August 2021.

"It takes ahead of agreement (HoA) and an amendment to the WK Rokan contract, which contains the scope of drilling activities and the return on investment costs at the end of the contract period, as well as the Abandonment and Site Restoration reserve costs which have not been clearly regulated in the generation contract," said Dwi Soetjipto.

    In this agreement, according to him, Chevron will get clarity regarding the return on investment. Thus, the government hopes that through Chevron's investment, the Rokan Block production can be maintained. The HoA signing is a short-term step taken in maintaining oil and gas production next year.

    ESDM Minister Arifin Tasrif confirmed that the government will oversee Chevron's investment and drilling implementation which is planned to start in November 2020. 

    President Director of PT Chevron Pacific Indonesia (CPI). Albert Simanjuntak said that the Rokan Block has become the foundation of the energy industry and has made a significant contribution to the progress of the country for decades.

"This agreement ensures that this strategic block will continue to play an important role in energy sovereignty in Indonesia for the coming year," said Albert.

Kontan, Page-12, Tuesday, Sept 29, 2020

SKK Migas Invites Chevron to Start Drilling in the Rokan Block

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that PT Chevron Pacific Indonesia (CPI) could immediately begin drilling in the Rokan Block to maintain oil and gas production during the management transition period. 

PT Chevron Pacific Indonesia (CPI)

    This is after the agreement to accelerate investment in the Rokan Block was agreed.

Dwi Soetjipto

    Head of SKK Migas Dwi Soetjipto said, to optimize the production level of the Rokan Block during the transition period, the government needs to oversee the continuation of investment before the block production sharing contract (PSC) ends. For this reason, heads of agreement (HoA) and amendments to the Rokan Block PSC are needed as the basis.

"This contains the scope of drilling activities and returns on investment costs at the end of the PSC period, as well as post-mining fund reserves (Abandonment and Site Restoration / ASR) which have not been clearly regulated in the generation contract, ”he said.

According to him, this agreement benefits both parties. This is because, with a clear return on investment, it is hoped that the Rokan Block oil production will not decline during the transition period. In the short term, this strategy is also to maintain national oil and gas production from falling in the next year.

the Rokan Block

"This agreement allows Chevron to drill in the Rokan Block before the end of the contract period in August 2021," Dwi added.

Blogger Agus Purnomo in SKK Migas

Following this agreement, SKK Migas and Chevron will finalize implementation details in the coming weeks. This is to support the commencement of drilling activities. Previously, SKK Migas had stated that Chevron was committed to drilling 104 wells in the Rokan Block, namely 11 wells this year and 104 wells in 2021. 

    The total additional oil production produced is estimated at 5,000 bpd. In detail, Chevron will operate 2 rigs to drill 11 wells in the Rokan Block in November-December this year. Furthermore, in January next year, Chevron will run 5 rigs to drill 96 wells.

The estimated cost required for drilling is the US $ 11 million in 2020 and US $ 115 million next year. Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif reminded Chevron and SKK Migas to realize the terms agreed upon in the HoA. 

    This is because the implementation of this provision will have an impact on efforts to achieve the national oil and gas production target next year according to the 2021 APBN macro agreement.

"We will continue to monitor its implementation periodically to ensure the commitment of all parties goes according to the agreement, especially the certainty of the implementation of drilling activities which will start in November 2020," said Arifin.

Meanwhile, President Director of PT CPI Albert Simanjuntak said, the Rokan Block is the foundation of the energy industry and has contributed significantly to the progress of the country for decades.

"This agreement is the result of a strong and collaborative partnership with the Government of Indonesia and ensures that this strategic block will continue to play an important role in Indonesia's energy sovereignty for years to come," said Albert.

This year, the Rokan Block is targeted to produce 170,763 bpd of oil. Until the end of last June, the realization of this block's oil production was recorded to have exceeded the target, reaching 179,682 bpd. However, until the end of the year, the projected production of the Rokan Block is only 170 thousand bpd. The Rokan Block is the second-largest oil producer in Indonesia.

Investor Daily, Page-10, Tuesday, Sept 29, 2020

Pertamina Focuses on Increasing Production

 

PT Pertamina (Persero) through its subsidiary continues to work on completing the work plan that has been launched, in order to increase the company's contribution to the achievement of national oil production.

In 2019, Pertamina's upstream contribution is around 41% of total national production, while this year it is targeted to increase to 49%. Furthermore, in 2021 Pertamina's contribution is expected to reach 60%, especially with the company's entry into the Rokan Block.

the Rokan Block

President Director of PT Pertamina EP Eko Agus Sardjono said that in facing the remainder of the 2020 period, the Pertamina subsidiary will focus on optimizing domestic gas absorption which is expected to be able to boost gas and condensate production.

"Apart from that, Pertamina EP also focuses on completing work plans for drilling exploration wells, seismic surveys, drilling development wells, workover, and well service so that the performance achievement at the end of the year can be achieved optimally," he said.

As of August 2020, Pertamina EP has realized 58 wells and 5 wells are underway, while the revised 2020 Corporate Budget Work Plan (RKAP) target is 79 wells. Meanwhile, 107 rework activities have been completed and 7 are in progress from the revised RKAP 2020 target of 192 activities. Realization of well maintenance and well intervention 2,103 activities have been completed from the revised 2020 RKAP target of 2,547 activities.

In addition, in August 2020 Pertamina EP has increased production through 4 development wells located in the work area of ​​Pertamina EP Asset 1, Asset 2, Asset 3, and Asset 5. With the additional production in August, overall Pertamina EP development drilling activities The 2020 Work Plan has succeeded in contributing 7,809 barrels of oil per day (bopd) and 5.6 MMscfd of gas to Pertamina EP's overall oil and gas production.

In accordance with the 2020 revised RKAP, until July 2020 Pertamina EP oil production reached 80.3 MBOPD or 99.6% of the target, and gas production was 866 MMscfd or 95% of the target. 

    Chief Executive Officer of PT Pertamina Hulu Energi (Subholdingupstream) Budiman Parhusip previously explained that the realization of Pertamina EP, which was still below the target, was caused by obstacles that arose during the Covid-19 pandemic and also low world oil prices. On the other hand, Pertamina will also disburse the US $ 80 million for drilling wells in the Rokan Block during the transition period which will start in August 2021.

President Director of Pertamina Hulu Rokan, RP Yudantoro, explained that during the transition period, the company will begin drilling as many as 44 wells in the Rokan Block. He said Pertamina Hulu Rokan (PHR) together with the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) had determined the coordinates of the entire well being drilled.

Blogger Agus Purnomo in SKK Migas

Currently, his party is preparing a rig for the drilling process. Pertamina Hulu Rokan needs 5 units - 6 units of rigs for drilling in 2021. Later, the rig units will be provided by PT Pertamina Drilling Service Indonesia (PDSI).

"We drilled the US $ 1.5 million for each well — only US $ 2 million," he said.

PT Chevron Pacific Indonesia (CPI)

Next year, it is targeted that as many as 184 wells will be drilled to smooth the transition of the management of the Rokan Block from PT Chevron Pacific Indonesia (CPI) to Pertamina. Yudantoro added that his party continues to strive to accelerate the transfer of exploration and exploitation data from the main fields so that they can immediately prepare for the drilling of 44 wells in the Rokan Block. Pertamina targets to carry out the drilling immediately after the transition from Chevron to PHR on August 9, 2021.

"PHR will ensure that drilling preparations from August to December 2021 can run smoothly, therefore intensive communication will be carried out with CPI so that the data transfer process, information procedures [SOP], and land preparation can run quickly, without significant obstacles," he explained.

In addition, Yudantoro continued, currently, the process is still being carried out, among others, the construction process of replacing a 364 km long trunk line that carries crude oil from the Rokan field to a storage tank in Dumai, which can then be used as a supply for product processing at the Pertamina Dumai Refinery.

ROKAN BLOCK TRANSITIONS

PHR, he said, is also preparing for the transition of Chevron workers who will later be empowered at PHR and at Pertamina in accordance with applicable regulations, such as workers in other management transfer blocks that Pertamina has previously handled.

"With the support of all stakeholders, we all hope that the transition in the Rokan Block can go well so that it can maintain oil and gas production to encourage national energy security and independence," he added.

The performance of a number of Pertamina's subsidiaries that were operators in several oil and gas blocks previously received the spotlight because they did not reach the set target. Based on SKK Migas data, as of June 2020, there were four Pertamina subsidiaries that did not reach the ready-made or lifting oil production target. In fact, so far, it is included in the top 15 cooperation contract companies (KKKS) as contributors to the national oil and gas lifting.

SKK Migas also asked Pertamina EP to optimize this year's work plan so that the production target is ready to sell or lifting can be achieved. Acting Head of Program and Communication Division of SKK Migas Susana Kurniasih said that the optimization of Pertamina EP's work plan must be realized because the contribution of this optimization will greatly affect the achievement of the lifting target.

"We hope that Pertamina EP can realize all the programs planned in the remaining 2020," he said.

Trisakti University teaching staff, Pri Agung Rakhmanto, assessed that Pertamina EP's performance results have an important influence and role in the national lifting performance. This is because Pertamina EP's overall production is around 82,000 bpd. He considered that the weakening of oil prices and the Covid-19 pandemic affected the capability investment of a number of oil and gas companies and must implement efficiency so that currently optimization is very necessary.

"It is quite important, Pertamina EP's overall production is around 10% -12% of the total national lifting," he explained.

Bisnis Indonesia, Page-21, Wednesday, Sept 23, 2020

SKK Migas Strengthens Coordination

 

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) together with PT Chevron Pacific Indonesia (CPI) continues to coordinate to ensure the transition to the Rokan Block takes place according to plan.

Blogger Agus Purnomo in SKK Migas

"SKK Migas and CPI are currently coordinating to carry out field preparations. If the head of agreement is signed, activities can go ahead, ”said Susana Kurniasih, Plt. Head of SKK Migas Program and Communication Division.

PT Chevron Pacific Indonesia (CPI)

Drilling in the Rokan Block by Chevron is confirmed to be still on schedule, namely November 2020. He said Chevron will use two rigs to drill the Rokan Block. Chevron is said to be able to increase the production of the Rokan Block working area to 5,000 barrels per day (bopd) from drilling 11 wells this year.

the Rokan working area (WK)

As of July 2020, oil production in the Rokan working area (WK) had fallen 170,000 bopd. For this reason, the process of transferring management of the Rokan Block must be smooth without causing the level of decline in production to continue to grow.

Sonita Purnomo

"As with any transition, there are a number of things that are being discussed so far, including options to support the state in optimizing production from this strategic asset," said Chevron's Corporate Communication Sonita Purnomo.

Dwi Soetjipto

Previously, the Head of SKK Migas Dwi Soetjipto explained that he was taking care of an environmental audit to transfer the management of the Rokan Block with Chevron. 

    Referring to the production sharing contract for the Rokan Block CA, Chevron does not have the obligation to reserve funds after mining. However, Chevron has committed to providing funds for the Abandonment Site Restoration or contaminated land.

In order for the transition process to run smoothly, PT Pertamina (Persero) was also asked to prepare for post-transition needs in the Rokan Block. Currently, Pertamina is also known to be preparing to procure a rig for drilling the Rokan Block which will be carried out in 2021. 

Fajriyah Usman

    VP Corporate Communication of Pertamina Fajriyah Usman explained, Pertamina has prepared rig procurement considering that Chevron has no more rig contracts since 2018 in the Rokan Block.

"For the Pertamina Hulu Rokan 2021 drilling, the preparation of drilling rigs is currently being processed through new procurement and Pertamina Group synergies," said Fajriyah Usman.

Bisnis Indonesia, Page-4, Monday, Sept 21, 2020

Pertamina Drilled 180 wells in Rokan

PT Pertamina Hulu Rokan (PHR) targets the drilling of new wells in the Rokan Block to reach 180 wells by 2022 after the transfer of management starts in August 2021.

the Rokan Block by Chevron

The number of wells drilling has increased from the planned period of August 2021 to December 2021, which was only 44 wells.

"For 2022, we will drill 180 new wells," said Pertamina Hulu Director Rokan R.P. Yudantoro.

He did not want to reveal the estimated rig requirements for drilling the 180 new wells. However, it is certain that drilling 44 wells in 2021 will be the responsibility of PT Chevron Pacific Indonesia (CPI), the main manager of the Rokan Block.

PT Chevron Pacific Indonesia (CPI)

Chevron has determined the location of 44 wells and through discussions with the Special Task Force for Upstream Oil and Gas Implementation (SKK Migas). Chevron will begin the preparation for the drilling location for 44 wells in early 2021.

"In order not to be constrained by land acquisition and construction problems (which will be done by Chevron), Pertamina Hulu Rokan chose a drill point that could be done from the existing well pad, so the only work needed was repairing the location," he said.

Pertamina is currently focused on completing a number of stages including IT systems and petrotechnical data transfer applications, licensing, electricity-steam and gas supplies, goods and services contracts, and preparation for drilling in 2021. For the provision of goods and services contracts, previously Pertamina started meeting 150 potential partners. 

    Work and conduct socialization related to procurement processes and procedures. The potential partners are Chevron's partners who have handled a number of goods and services needs in the Rokan Work Area.

Regarding the continuation of the head of agreement (HoA) transition which took effect in September 2020, the Deputy for the Coordination of Maritime Sovereignty and Energy, the Coordinating Ministry for Maritime Affairs and Investment, Purbaya Yudhi Sadewa said, Currently the finalization stage at the Ministry of Energy and Mineral Resources is especially for the certainty of the implementation of the HoA. Even so, he considered it difficult to ensure that the HoA could be signed this week. However, Chevron's drilling plan for November has not changed.

Kontan, Page-12, Friday, Sept 18, 2020