Drilling for the Rokan block continues

 

    PT Chevron Pacific Indonesia and PT Pertamina Hulu Rokan (PHR) continue to target drilling 192 wells in Block Rokan Riau this year.

PT Chevron Pacific Indonesia

    In particular, PT Chevron Pacific Indonesia (CPI) has drilled 55 wells in the production rate containment activities in the Rokan Block which will be transferred to PT Pertamina Hulu Rokan (PHR) in August 2021.

    Managing Director of Chevron Indo Asia Business Unit & President Director of PT Chevron Pacific Indonesia Albert Simanjuntak explained that the drilling program in the Rokan Block is continuing to maintain production levels.

    Since starting at the end of December 2020, according to him, PT CPI has successfully drilled 55 wells, including 11 conversion wells, by operating six drilling rigs and one conversion rig.

    The process of procuring additional rigs is underway to meet the target of drilling 192 wells in the Rokan Block by 2021.

Blogger Agus Purnomo in SKK Migas

"We continue to coordinate intensively with SKK Migas and PHR so that the drilling program can run as expected. The collaboration is very solid because all parties have the same passion and commitment, ”he said in a statement on Monday (17/5).

    For the termination process, CPI has completed the PSC provisional checklist termination document on February 25, 2021. It has reached 81% for asset reporting, with approximately 109,000 assets that have been physically inspected and reported. The closure of project reports reached 70% or around 2,940 reports that have been completed.

    Currently, the process of verification and validation (V&V) of exploration and exploitation data of the Rokan Block is underway by the Center for Data and Information Technology (Pusdatin) ESDM and SKK Migas as part of monitoring.

    The V&V process was carried out on approximately 1 million items of printed documents, magnetic and optical media, and rock samples. The process is expected to be completed this month.

“The CPI team continues to work hard to realize a safe, reliable, and smooth termination and transition process. The Rokan block is a strategic asset that is important for state and regional revenues, the community's economy, and national energy security, "he said.

    Albert said the CPI is also trying to ensure the readiness of its employees. Meanwhile, CPI has submitted all personnel and organizational data to SKK Migas.

    

the Rokan Block

    Along with the transfer of management of the Rokan Block, almost all CPI employees will change their employment status to the new operator.

    In preparing its employees, CPI has prepared organizational capabilities, held various communication forums and debriefing programs. The provisioning program includes technical preparation for transitions, positive mental development in facing change to financial management.

    According to him, the Rokan Block's solid performance so far cannot be separated from the human resource factor behind it, namely employees with built-in expertise, culture, and work ethic.

"We are optimistic that they will be able to maintain the performance of the Rokan Block and can contribute significantly to new companies," said Albert.

    Reforminer Institute founder Pri Agung Rakhmanto asked that all preparations for the transition period of the Rokan Block must be matured so that later it does not interfere with production operations.

    At least, three crucial points need to be considered during the transition period for managing the Rokan Block. First, related to legal issues that must be resolved.

"Of course everything related to the legal basis must be completed because this is the basis for everything. In this regard, I think the process is relatively smooth, ”he told Bisnis.

    Second, things related to operational activities must be ensured that they continue to run well. He explained that production operations must continue and continue without any vacancies.

    Third, related to management. During the transition period, it is necessary to ensure that the new management can ensure that operations can continue to run smoothly and can manage properly in maintaining the level of investment, reserves, and ultimately production.

    According to him, finding partners by PHR, a subsidiary of PT Pertamina to work on the block, is a management problem.

"Later the new management will and need to assess all of it," he said.

NEED TO PARTNER

    Executive Director of the National Oil and Gas Companies Association (Aspermigas) Moshe Rizal explained that the most crucial thing in managing the Rokan Block is how Pertamina gets a strong partner with strong funding and operational capabilities, as well as strong technology.

    With great responsibility to oil and gas fields throughout Indonesia, he added, Pertamina's capacity is limited. This limitation can be seen in terms of funds and operational capabilities. To maximize production, he suggested that Pertamina should not work on the Rokan Block itself.

    He argues that there needs to be aware of its capacity and put aside political egos in the national interest so that the block is not in the same boat as the Mahakam Block, which has experienced a decline in production after being transferred to Pertamina.

"Must be willing to cooperate in terms of operations, at least joint operatorship, and perhaps also offer most of the PI," he explained.

Basuki Tjahaja Purnama AKA Ahok

    Previously, Pertamina President Commissioner Basuki Tjahaja Purnama was reviewing several oil and gas fields owned by the company to be used as a reference in managing the Rokan Block.

    The man who is familiarly called Ahok revealed that his party did not want to make the Rokan Block's fate when it was transferred to management, not to experience a decline in production as happened in the Mahakam Block.

The Cepu Block Exxonmobil

    Previously, Ahok visited Cepu Block, East Java to compare oil and gas blocks managed in collaboration with strategic partners with oil and gas blocks that are managed independently.

"Why can Banyu Urip become the pride of Indonesia's oil field with low production costs? Is it because Pertamina is only 45% and Exxon as a partner has excellent management and technology? They train and transfer technology very well for our nation, ”he said recently.

    Ahok said that Banyu Urip's field performance was considered very good. This is evidenced by the absence of oil spills of more than 1 barrel of oil and no lost time incidents since February 2016, and uptime of over 99% with production costs below the US $ 2 per barrel.

    According to Ahok, the results of the study from the Banyu Urip field will be implemented in the Rokan Block field and other oil and gas blocks managed by Pertamina. However, Ahok was reluctant to reveal the potential partners for the Rokan Block.

"We do not want the Wells blocks taken by Pertamina, such as the incident in Mahakam, not to be repeated in Rokan. Do it yourself, if not better, there must be a solution, "he said.

Bisnis Indonesia, page-4, Tuesday, May 18, 2021

Existing Power Supply Continued 3 Years

    The existing power plant in the Rokan Block is certain to continue operating for the next 3 years, even though there is a transfer of operator management in the working area.

Blogger Agus Purnomo in SKK MIGAS

    Deputy Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Fatar Yani said electricity was one of the nine important elements in the process of transferring management of the Rokan Block from PT Chevron Pacific Indonesia to PT Pertamina Hulu Rokan (PHR).

PT Chevron Pacific Indonesia

"Of course it will continue even though there are other parties who enter. What is clear, 3 years is still going on to continue to sustain, "he said.

    The electricity and steam supply in the Rokan Block is currently produced by a steam gas power plant (PLTGU) operated by PT Mandau Cipta Tenaga Nusantara (MCTN) which is directly owned by Chevron Standart Ltd.

    Fatar said MCTN will carry out a business-to-business mechanism with new investors. He hopes that the process will not interfere with the transfer of management in the Rokan Block.

the Rokan Block

    Director of Commerce and Customer Management of PT PLN (Persero) Bob Sariel said that his party had signed an MoU for the supply of electricity and steam with Pertamina Hulu Rokan which will take effect in August 2021.

    Bob explained that in supplying electricity and steam for the Rokan Block, PLN divides it into two stages, namely the transition period and the permanent period. The transition period will last for 3 years starting from August 2021 to August 2024.

"During this transitional period, PLN will manage the existing power plants that currently have powered the Rokan work area," he explained. 

Bisnis Indonesia, Page-4, Wednesday, April 28, 2021

the Confusion over Management of the Rokan Block

 

    The government, in this case, the Ministry of Energy and Mineral Resources (ESDM) and SKK Migas, are asked to immediately step in to resolve a number of issues that remain in the process of transitioning the Rokan Block from PT Chevron Pacific Indonesia (CPI) to Pertamina Hulu Rokan. The reason is, according to the management transfer contract, it must be carried out on August 9.

PT Chevron Pacific Indonesia (CPI)

"Transfer of management will be carried out on August 9, 2021. However, it leaves many problems. The EOR issue has not yet been resolved, but the electricity problem has reappeared which will affect the transition process. We ask the Government's firmness to deal with this immediately. The state should not be defeated by private corporations that have the potential to harm the state for their activities so far, "said Executive Director of Energy Watch Mamit Setiawan.

    Mamit even asked law enforcement officials to intervene considering the potential crimes that could harm the state during the electricity and steam leasing process which has been done by Chevron Pacific Indonesia with PT Mandau Cipta Tenaga Nusantara (MCTN).

Chevron

"Chevron's footprint in Indonesia must be investigated until it is clear before the transition process is carried out. Don't let the Rokan Block electricity become scraped (catch a cold), "he joked.

    As is known, Pertamina, through their subsidiary Pertamina Hulu Rokan (PHR) on February 1, 2021, has signed a power and steam sale and purchase agreement with PLN.

"PLN itself has proposed 2 options related to this agreement, namely in the short term until 2024 they have to build transmission and distribution lines," he said.

    This is because so far Chevron has rented electricity and steam from PT Mandau Cipta Tenaga Nusantara (MCTN) since 1998. Ironically, MCTN's ownership is 95% owned by Chevron Standard Limited and 5% by Nusagalih Nusantara. So that it is pointed out that Chevron Pacific Indonesia has carried out transfer pricing since 2008.

"This was disclosed by the Supreme Audit Agency (BPK) in 2006 where Chevron asked the government to return the cost of renting electricity and steam from the government since collaborating with MCTN," he said.

    This process, said Mamit, has the potential to cost the state US $ 210 million. Based on information from SKK Migas, Chevron pays the US $ 80 million annually for electricity and steam leases to MCTN and this is included in the fees that are billed (EOR) back to the government.

"This proves that MCTN's assets must be returned to the state because the government has paid all the investment costs made to build MCTN's electricity and steam facilities," he said.

Investor Daily, Page-10, Monday, April 26, 2021

Instead of Manage Challenging Rokan Blocks

    The transfer of management of the Rokan Block from PT Chevron Pacific Indonesia to PT Pertamina (Persero) left a problem with the electricity supply. With crude oil production of 160,000 barrels per day, the Rokan Block requires an electricity supply of up to 400 megawatts and steam of 335,000 standard barrels per day. It is feared that the problem will affect oil production when the block in Riau was managed by Pertamina.

Blogger Agus Purnomo in SKK Migas

    According to Fatar Yani Abdurrahman, Deputy Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), the electricity supply in the Rokan Block is the backbone of the block's production operations. 

    So far, the supply of electricity and steam has been managed by PT Mandau Cipta Tenaga Nusantara (MCTN), which has a contract with Chevron. The company operates a Gas and Steam Power Plant (PLTGU) with a capacity of 300 MW.

"SKK Migas knows that the plant is being tendered and sold to the highest bidder. We have also discussed with Chevron that the most reliable electricity manager in Indonesia is only PT Perusahaan Listrik Negara (Persero). We'll just wait for the solution, "said Fatar in the webinar" Safeguarding State Assets and Sustainability of Electricity Supply in the Rokan Block ".

the Rokan Block by Chevron

    The PLTGU in the Rokan Block has become a polemic, regarding its status as a state asset or not a state asset, in a cooperation contract scheme based on cost recovery.

    John Simamora, Director of Strategic Planning and Business Development at PT Pertamina Hulu Energi (PHE), said that his party had agreed to hand over the electricity supply in the Rokan Block to PLN. 

PT Perusahaan Listrik Negara (Persero)

    However, if PLN is not ready to supply electricity until the limit of handing over management of the Rokan Block to Pertamina, another option is to extend the power supply contract with MCTN.

    Executive Vice President of Corporate Communications and PLN CSR Agung Murdifi, through an official statement, stated that PLN is very ready to meet the electricity needs of the Rokan Block. The Sumatra electricity system has a power reserve of 2,800 MW.

Kompas, Page-10, Friday,  April 9, 2021

PLN Is Judged as Most Eligible to Manage Electricity Supply in the Rokan Block

 

    After the expiration of the PT Chevron Pacific Indonesia (CPI) contract in early August 2021, the electricity supply business in Rokan Block, Riau Province, is deemed to be carried out by PT PLN (Persero), as the state-owned electricity company as well as the mandate holder of the Decree of the Minister of Energy and Mineral Resources Number 634 12/20 / 600.3 / 201.

PT Chevron Pacific Indonesia (CPI)

"According to Ministerial Decree No. 634, no business entity other than PLN has the right or authority to carry out electricity supply business activities in the Rokan Block," said PLN Commercial and Customer Service Director Bob Sariel, while speaking at a webinar entitled Safeguarding State Assets and Sustainability of Electricity Supply. in the Rokan Block organized by the Energy and Mining Editor Society (E2S).

PT PLN (Persero)

    According to Bob, the provision of electricity is very important in supporting the efficiency and adequacy of electricity nationally, every business entity wishing to participate in the electricity supply business should always be based on cooperation with PLN as a provider of electricity throughout Indonesia.

"For PLN, electrifying the Rokan Block is not about profit but about carrying out national duties," he said.

    The majority of the electricity supply in the Rokan Block comes from the Gas and Steam Power Plant (PLTGU) managed by PT Mandau Cipta Tenaga Nusantara (MCTN) whose majority shares are owned by Chevron Standard Ltd (CSL).

    Chevron's electricity and steam agreement with MCTN, whose majority shares are owned by CSL as a Chevron Holding group, is embodied in the form of an Energy Service Agreement (ESA) with a return on investment in the form of a Capacity Fee. The contract period starts from 2000 to August 8, 2021, where the revenue is estimated to have exceeded the return on investment so that the interests of shareholders have been fulfilled so far.

the Rokan Block Chevron

    Bob explained, after the end of the Rokan Block management contract by CPI, the ESA between CPI and MCTN also ended. CSL, as the majority shareholder of MCTN, should not conduct an open bid for the sale of MCTN shares using the services of JP Morgan's financial consultant. Because the management of the Rokan Block by CPI ends in August 2021.

    CSL as the majority shareholder of MCTN whose agreement with CPI also ends in August 2021 should communicate conducive to electricity and steam providers appointed by Pertamina in providing reliable and efficient electricity and steam for the long term along with the management of the Rokan Block which switches to Pertamina starting August 9, 2021.

PT Pertamina Hulu Rokan (PHR) Working Area

    Bob said PLN is ready to carry out an important mandate to support the management of the Rokan Block by PT Pertamina Hulu Rokan (PHR), a subsidiary of PT Pertamina Hulu Energi, to produce and produce as much as possible for the country. PLN is also ready to conduct business-to-business negotiations with Chevron regarding the power plant in the Rokan Block.

"B2B problem, yes we do, of course, this must be based on fairness. What is being offered must be something that is reasonable, "said Bob.

    According to him, PLN is capable of managing the CSL generator in Rokan. Moreover, PLN is accustomed to using any technology for generators.

"Like the PLTGU in Tanjung Priok and Muara Karang, the engine is the same as in the Rokan block," he said.

    Fataryani Abdurahman, Deputy Head of SKK Migas, said that SKK Migas has sent a letter to Chevron regarding the power plant in Rokan.

"We said that the profits have been many, for 20 years you PT Chevron Pacific Indonesia (CPI) have got a lot of benefits. But sometimes we forget that they also maintain, "he said.

    According to Fatar, electricity is the backbone of operations in the Rokan Block. Because the PLTGU was designed in the 90s to implement Steamflood Enhanced Oil Recovery (EOR) technology which requires a large electricity supply.

Investor Daily, Page-10, Friday,  April 9, 2021

Chevron Electric Tenders Too High

 

    PT PLN (Persero) asked Chevron to conduct an open tender for the Rokan Block electric generator, including by not setting an auction value of US $ 300 million because it was considered too high.

the Rokan Block

    Director of Commerce and Customer Management of PLN, Bob Saril, said that the business to business process related to the auction of the 300 megawatt (MW) power plant must be based on justice. According to him, the price set by Chevron is too high, so the pricing for the assets must be based on a fair assessment.

"The purchase value alone was US $ 190 million 20 years ago. We want to sell US $ 300 million, ”he said in the webinar on Safeguarding State Assets and the Sustainability of Electricity Supply in the Rokan Block.

the Rokan Block Working Area

    Bob also regretted that Chevron's move to hold the tender in the United States had prevented the process from being open. PLN is working with a number of related institutions to calculate the fair value of the asset which Chevron owns 95% of its shares.

“The tender process must be carried out fairly, but it seems that the tender process is not open. Intentionally covered up to find the highest value "he said.

    According to him, in the authority to supply electricity in the Rokan Block, PLN refers to the Minister of Energy and Mineral Resources Regulation No. 28 of 2021 and the Minister of Energy and Mineral Resources Regulation No. 30 of 2018. The Rokan Block area is part of the PLN electricity sales business area. For this reason, the supply of electricity and steam in the Rokan Block must be handed over to PLN as the party responsible for generating electricity. Other business entities can support PLN for other supporting services in carrying out these national duties.

PT PLN (Persero)

"For PLN, electrifying the Rokan Block is not about profit but by carrying out national duties," he said.

    On the other hand, PT Pertamina (Persero) will also prepare options if the acquisition process for Chevron's power plant in the Rokan Block cannot be completed during the transition period of management transfer.

    Pertamina's Upstream Subholding Director of Strategic Planning and Business Development John Simamora said that his party had partnered with PLN by signing a memorandum of understanding between the two parties to ensure the supply of electricity in the Rokan Block. 

    However, if the process of acquiring Chevron's power plant which is operated by PT Mandau Cipta Tenaga Nusantara has not been completed by the time of transfer of management on August 9, 2021, Pertamina must take steps so that the production process is not disrupted.

"We prioritize production, so the best step is if the latest PLN data cannot be taken over on August 9, we will of course mirror the contract until PLN succeeds in completing the process that is currently happening," he said.

    With regard to the selling price of electricity, John said that the tariff that PLN will apply will not be much different from the current price. In fact, it is possible that PLN's price will be more competitive.

"Because it could be that the actual costs so far shouldn't have been that much."

Blogger Agus Purnomo in SKK Migas

    Seeing the problems in the Rokan Block, Deputy Head of SKK Migas Fatar Yani Abdurahman said the main priority during the transfer of management of the block was to maintain production. 

    According to him, the acquisition process takes a long time because it could be a year to two years. For this reason, there are a number of options so that the demand for electricity and steam in the Rokan Block can be guaranteed during the operator shift period.

    Several viable options include mirroring contracts or forming a consortium with the old operator. Apart from that, the state could also ask for these assets to be transferred to PT Pertamina Hulu Rokan (PHR) or a regionally owned business entity.

    Furthermore, Fatar added that as of March 2021, out of the target of drilling 192 wells included in Chevron's investment, the realization had reached 28 wells. Meanwhile, for the workover activities of the target of 10 activities, 3 workovers have been realized. Reflecting on the process of transferring management of the Mahakam Block, SKK Migas prepares anticipatory steps to maintain production rates in the Rokan Block.

    In this regard, SKK Migas Operations Deputy Julius Wiratno said that his party would be quicker to start drilling activities so that they could reduce the rate of decline in production when the confusion shifted to PT Pertamina Hulu Rokan (PHR). Development drilling is also ongoing in addition to the use of Enhanced Oil Recovery (EOR).

Bisnis Indonesia, Page-3, Friday,  April 9, 2021

Oil and Gas Glory Relay Burden

 

    Reflecting on the history of the Rokan Block, Indonesia may have to thank the four people sent by the Standard Oil Company of California (Socal) 97 years ago to undertake a geological expedition to the island of Sumatra. The expedition was led by E.M. Butterworth with the geological group of which R.N. Nelson, M.M. Orr, and E.R. Wall. Exploration was carried out in various areas, including Kalimantan, neighboring small islands, and Sumatra, particularly the Aceh region.

    The expedition is Socal's first attempt to acquire land to be used for oil exploration in the eastern hemisphere of the world. During the reign of the Dutch East Indies, to be precise in 1930, Socal together with the Netherlands formed the Nederlandsche Pacific Petroleum Maatschappij (NPPM) which was the forerunner of PT Chevron Pacific Indonesia (CPI). At that time, seismic exploration was still in its early stages. NPPM geologists and local workers walk along forest streams looking for exposed bedrock.

PT Chevron Pacific Indonesia (CPI)

    Six years later, to be precise, in 1936 Socal together with the Texas Oil Company (Texaco) founded the California Texas Petroleum Corporation or commonly known as Caltex. 

the Rokan Block by Chevron

    However, finding petroleum resources in the Rokan Block is not easy. It took 15 years from 1924 to 1941 to find the area of ​​crude oil reserves in the Duri Field. With billions of barrels of oil below ground level, Duri Field was the largest oil-deposited field in Southeast Asia until the discovery of the Minas Field in Southeast Asia in late 1944.

    The discovery also made Indonesia the largest crude oil producer in Southeast Asia at that time. The Pacific oil company Caltex or Caltex Pacific Oil Company (CPOC) then developed the giant Minas Field to reach 15,000 barrels of oil a day at the start of its production until 1952, the first shipment of oil from the Minas Field was made. After more than half a century, Chevron has produced more than 12 billion barrels of oil from onshore fields in Riau Province and offshore fields in East Kalimantan Province.

Chevron

PERTAMINA ERA

    Chevron's heyday in Indonesia by becoming the operator of the Rokan Block is coming to an end. In 2018, the government decided to provide management of the Rokan Block to PT Pertamina (Persero) starting in August 2021. The decision was taken after Pertamina's proposal was more attractive than the proposal Chevron offered to the government. 

    However, the government also emphasized that the transition period could be carried out as soon as possible. At that time, the Head of the Communication Bureau, Public Information Services and Cooperation of the Ministry of Energy and Mineral Resources (EMR/ESDM), Agung Pribadi said that after learning from the experience of the Mahakam Block transition, discussions and preparations for the transition to the Rokan Block were carried out earlier, but were still effective.

"Collaboration will be intensified starting 2019," he said.

    In the approved proposal, it was stated that Pertamina would give a signature bonus to the government worth the US $ 784 million. In addition, there is a firm work commitment of US $ 500 million. Pertamina also promised state revenue from the management of the Rokan Block to reach Rp. 850 trillion over the next 20 years.

    President Director of Pertamina Hulu Rokan R. P. Yudantoro said that his party had prepared a long-term program to maintain production and curb the rate of decline in oil. At least 44 development wells will be drilled in 2021 after the block is transferred to Pertamina. In addition, another 40 additional development wells are planned in accordance with discussions with SKK Migas.

    Chevron is still being asked by the government to play an active role in the transition process. As a result, the company agreed to continue investing in the Rokan Block during the transfer of management. 

the Rokan Block Working Area

    In December 2020, Chevron also started the first drilling in the Rokan Block after 2 years. In the latest development, Chevron Pacific Indonesia Corporate Communication Manager Sonitha Poernomo stated that he had started sharing Rokan Block data with Pertamina. 

Sonitha Poernomo

    Sonitha added that Chevron shared the data with PT Pertamina Hulu Rokan (PHR) as the next Rokan Block operator so that the transition process would run smoothly.

"We hope that the process of transferring the management of the Rokan Block can become one of the points of reference for the transfer of other oil and gas working areas in Indonesia," said Sonitha.

    From August 2020 to March 2021, Chevron has submitted all data included in the termination checklist to SKK Migas. The data includes those related to geology and geophysics, licensing, standard operating procedures (SOP), production facilities, land, goods and services contracts, human resources, and community development programs. 

    In the end, Chevron's trail in the Rokan Block, which is full of history, is only 4 months away. Furthermore, will Pertamina be able to continue the baton that has been held by Chevron for almost a century and keep the promises made previously? Only time will tell.

Bisnis Indonesia, Page-4, Monday,  March 29, 2021

The Rokan Block Work Area Use Electricity Supply from PLN

 

    PT Pertamina (Persero) through its subsidiary PT Pertamina Hulu Rokan (PHR) uses electricity supply from PT Perusahaan Listrik Negara (PLN) for oil and gas production operations in the Rokan Block Work Area. 

the Rokan Block Work Area

    Based on data, with average production in the range of 161 thousand barrels per day, currently, Working Area Rokan requires an electricity supply of up to 400 Megawatts (MW) and steam of 335 thousand standard barrels per day (MBSPD).

    To ensure the supply of electricity and steam in the operation of the Rokan Block Work Area, PLN and PHR have agreed and signed the Electricity and Steam Sale and Purchase Agreement (PJBTLU) on February 1, 2021. 

PT Pertamina Hulu Rokan (PHR)

    From the agreement, PLN will carry out two stages to ensure that the electricity supply in the operation of the Rokan Block Working Area is available safely. The first stage, the transition period by utilizing the existing power plant which will last for 3 years, starting on August 9, 2021. As for the second stage, the permanent service period will rely on PLN's generators and network which will start in 2024.

PT Perusahaan Listrik Negara (PLN)

"The synergy of the National Electricity BUMN/SOE will create more efficient operations because Pertamina believes that electricity supply from PLN is more reliable by building an interconnection network of systems and substations and can be backed up from other power plants, so as to increase the electricity supply capacity for the operational activities of the Rokan Block Work Area," said Pertamina's Senior Vice President for Corporate Communication & Investor Relations, Agus Suprijanto.

the Rokan Block Work Area By Chevron

    Agus Suprijanto added that Pertamina as the holding company will oversee the performance of PHR to ensure that the management transfer process of the Rokan WK runs well in order to maintain national oil and gas production, which is about 25% contributed from the production of the Rokan block Working Area. The production is obtained from five large fields, namely Duri, Minas, Bangko, Balam South, and Petapahan, which are spread across five districts in Riau Province.

"Considering that the Rokan block working area is considered mature, Pertamina will utilize the latest technology and has prepared a long-term program to curb the decline in oil production in the Rokan block working area," he said.

    Agus said several efforts were made to maintain the production of the Rokan block, including preparing and completing the licensing process, transferring workers, ensuring that the transfer of goods and services contracts and data transfer from existing operators went smoothly.

"Pertamina continues to build communication with the Government to ensure the smooth running of the PHR drilling program in the Rokan block working area throughout 2021, namely 84 wells consisting of 44 development wells and 40 additional wells," said Agus.

    Apart from drilling development wells, in the long term, other programs are also prepared in the form of Infill Drilling, exploration well drilling, workover/well intervention, optimization of waterflood and steam flood programs, and other programs to increase reserves.

"As a State-Owned Enterprise (BUMN) that carries the mandate of managing national oil and gas, Pertamina hopes for the support of the Government and, all stakeholders to ensure that the future of the Rokan block Works Area is more beneficial for the nation and state," said Agus.

Investor Daily, Page-10, Monday,  March 23, 2021

The Government and DPR Guard over Management of the Rokan Block

 

    The government together with the House of Representatives (DPR) are closely monitoring the process of transitioning the Rokan Block from PT Chevron Pacific Indonesia (CPI) to PT Pertamina (Persero) in August 2021. Management of one of the largest oil blocks in Indonesia is expected to maintain production and provide great benefits. for the people of Riau and Indonesia in general.

PT Chevron Pacific Indonesia (CPI)

    The Director-General of Oil and Gas, Tutuka Ariadji, expressed his support for the management transfer process facilitated by the Upstream Oil and Gas Special Task Force (SKK Migas) in accordance with the prevailing regulations.

Blogger Agus Purnomo In SKK Migas

"I hope that the Rokan Block production can be maintained, even increased. "We have identified other potentials in the Rokan Block that have not been developed by PT CPI and are a hope for an increase in oil and gas production in the future," said Tutuka before visiting the Minas Field at Balai Serindit, Pekanbaru City.

    Commission VII in the field of energy, the House of Representatives (DPR) Alex Noerdin, who leads the Oil and Gas Working Committee between the Government and the DPR, emphasized that the transfer of management is proceeding smoothly.

"God willing, the transfer of management of the Rokan Block will run smoothly, and most importantly it will provide great benefits for the people of Riau and this republic," said Alex.

    With this transfer of management, it is hoped that it can increase regional income and the standard of living of the community. Alex also asked the Riau Regional Government to be involved in the Rokan Block Management Transfer Team. 

    Riau Governor Syamsuar hopes that oil and gas production from the Rokan Block can be maximized because this regional income is very dependent on oil and gas revenue sharing.

"For example, the oil and gas revenue sharing is modest, we are in trouble. Meanwhile, on the other hand, the development of oil and gas infrastructure, such as roads which are the responsibility of the provincial government, has not been completed, "he said.

    For this reason, the Riau Regional Government strongly supports the smooth management of the Rokan Block and is committed to facilitating and maintaining a safe and conducive situation in the transition to Pertamina. Syamsuar stated the readiness of BUMD and local companies in business-to-business cooperation and as vendors or contractors in all sectors, both operators and supporters.

"We also emphasize on PHR to conduct information disclosure for Pertamina's workforce needs," he said.

    He also emphasized that the Riau Regional Government is ready to help facilitate licensing during this transition of management transfer. Deputy for Planning of SKK Migas Jaffe Suardin explained, to hold back the decline rate of oil and gas production in the Rokan Block, drilling investment has been carried out since January 2021. 

    The Rokan Block definite work commitment for 2021-2026 is US $ 500,000,000, consisting of an exploration program of US $ 142.3 million and the exploitation program (EOR) of US $ 357.7 million. The current progress of managing the Rokan Block related to technical and operational data migration has reached 80%.

the Rokan Block

    Meanwhile, the Chemical EOR has reached 50%, where CPI and PHR continue to work together in accelerating data transfer, conversion models, solving issue surfactants, and reinstatement SFT-2 facilities. For contract management, the progress has reached 60% where 236 of the total 393 existing contracts have been mirrored. Procurement of rig and material for 115 wells reached 100%, while 77 wells reached 10%.

PHR

    Regarding employment, 70% has been completed where an agreement has been reached for the transfer of employees between PT CPI and PHR. PHR will also continue its social and environmental responsibility programs. This program is prioritized to increase the independence of the Riau people in the fields of education, economy, and environmental conservation. Program planning will involve local governments.

Investor Daily, Page-10, Monday,  March 15, 2021