Jokowi Orders Pertamina to Speeding

    The Rokan Block has returned to Indonesia after 97 years of being managed by America. Pertamina Hulu RokanM (PHR), which is a subsidiary of Pertamina, has officially taken over one of the largest oil and gas fields in the country for the next 20 years. The Rokan Block was successfully taken over on Monday, August 9, 2021. President Joko Widodo appreciated the efforts made by the company.

"Congratulations on the return of the management of the Rokan Block to Indonesia," said Jokowi.

The President Joko Widodo (Jokowi)

    The Head of State reminded Pertamina to increase the production of the Rokan Block. He did not want the production of the Rokan Block to decline after being taken over.

“This transfer of management is a challenge. We are challenged to prove our worth. Don't let the productivity of the Rokan Block decrease after we manage it ourselves," said Jokowi.

the Rokan Block Chevron

    He asked to maintain the sustainability of one of the country's great assets. It is hoped that national oil production can continue to increase and the benefits can be achieved felt by the local community.

"I believe Pertamina is able to manage the Rokan Block well," he said.

    Jokowi asked Pertamina to work hard in managing the Rokan Block. Jokowi hopes that full control of the Rokan Block can make the country profitable.

"Pertamina must work hard to maintain the sustainability of the Rokan Block as a support for national oil production and increase utilization for the region," said Jokowi.

    Jokowi believes Pertamina is capable of managing the Rokan Block. Jokowi hopes that all employees at Pertamina can make good use of it.

"Congratulations on the return of management to the motherland's lap, and congratulations on working for the entire team from Pertamina," said Jokowi.

    Previously, the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif asked PT Pertamina (Persero) to increase the production of the Rokan Block through its affiliate PT Pertamina Hulu Rokan (PHR). 

PT Pertamina Hulu Rokan (PHR)

    Arifin said that based on the planned joint agreement, the transfer of management of the Rokan Block from PT Chevron Pacific Indonesia (CPI) to PHR will bring the production of the Rokan Block Working Area to continue to increase. This goal can be realized if PHR makes a massive drilling investment.

PT Chevron Pacific Indonesia (CPI)

"I hope that PHR proposes an aggressive production increase activity for the remainder of 2021 and the following years. This must be Pertamina's commitment, considering that the Rokan Working Area is one of the largest oil block working areas in Indonesia," said Arifin.

    The Rokan Block is one of the strategic work areas that has produced 11.69 billion barrels of oil (from 1951 to 2021), with an average oil production of 2021 to July 2021 of 1605 thousand barrels per day (BPD) or about 24 percent of national production and 41 million standard cubic feet per day (mmscfd) for natural gas.

Nicke Widyawati

    Following up on the message from the Minister of Energy and Mineral Resources, Pertamina President Director Nicke Widyawati said the mandate given by the government to manage the Rokan Block oil Working Area would be carried out optimally.

"Pertamina will be committed to carrying out this mandate as well as possible for the interests of the Indonesian nation and state," said Nicke.

    According to Nicke, the management of the Rokan Block to Pertamina as a state-owned company certainly provides wider benefits for the state, both in terms of management and in terms of state revenues. At the same time, it will strengthen Pertamina's position, especially Pertamina Hulu Rokan, which plays a role in driving development and the national economy.

Harian Bangsa, Page-1, Thursday, Aug 12, 2021

Officially Working on Rokan Block, Pertamina Distributes US$ 2 Billion Investment

    PT Pertamina (Persero), through PT Pertamina Hulu Rokan (PHR), officially holds the management of the Rokan Block starting August 9 at 00.01 WIB. To increase the oil production of this block, the company plans to invest up to US$ 2 billion until 2025. The increase in production of the Rokan Block is to support the targets of 1 million barrels per day (BPD) and 12 billion standard cubic feet per day/BSCFD by 2030.

"Pertamina has set an investment budget until 2025 of US$ 2 billion," said Pertamina President Director Nicke Widyawati at the Rokan Block Management Transfer Ceremony.

Nicke Widyawati

    According to Nicke Widyawati, her party sees the Rokan Block still as unconventional oil and gas potential to increase national oil and gas production. Nicke affirmed his commitment to maintaining the Rokan Block's oil production. 

PT Chevron Pacific Indonesia (CPI)

    Her party will continue the drilling activities that have been started by PT Chevron Pacific Indonesia (CPI) as the previous operator. To prevent this block's oil production from falling, it will drill 161 wells this year and an additional 500 wells next year. It will also continue its advanced oil recovery (EOR) activities.

    On that occasion, the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said the management transfer of the Rokan Block was prepared long ago so that oil production from this block would not decrease. In addition, with a mutual agreement during the management transfer period, the production of this oil and gas block in Riau is expected to continue to increase. 

    Increasing production must be Pertamina's commitment. Moreover, the Rokan Block is one of the largest blocks in Indonesia that has strategic value in achieving the oil production target of 1 million BPD and 12 BSCFD gas by 2030.

“This goal will be realized if PHR invests in drilling massively. Therefore, it is hoped that PHR will propose an aggressive production increase for the remainder of 2021 and the following year," said Arifin.

Blogger Agus Purnomo in SKK Migas

    Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto explained that his party had been preparing to manage this block two years ago. One of the things that his party strives for is to initiate a Head of Agreement (HoA) which guarantees CPI investment at the end of the contract period. 

    As a result, Chevron managed to drill 103 development wells until the last second of management switching. Thus, the transfer of management runs smoothly and the level of oil production until the contract expires can be maintained.

the Rokan Block Chevron

"This is an important matter for the nation and the state considering that the Rokan Block currently still supports 24 percent of national production and is expected to remain Indonesia's mainstay work area," said Dwi Soetjipto.

    Riau Governor Syamsuar also requested that PHR be able to maintain the production of the Rokan Block.

“We welcome PHR who has been given the mandate to manage the Rokan Block. Hopefully, it will not be the same as the Mahakam Block in Kalimantan," said Syamsuar.

    Chevron IndoAsia Business Unit Managing Director & Chevron Pacific Indonesia President Director Albert Simanjuntak appreciates the collaboration with SKK Migas and Pertamina that has been carried out during the transition period, so that the transfer of management takes place safely, reliably, and smoothly.

"Hopefully the Rokan Block can continue to give its best contribution to the nation and state," said Albert.

    This year, the Rokan Block oil production is targeted at 165 thousand BPD with a realization of 160,646 thousand BPD or 97.4% of the target at the end of June. Next year, SKK Migas projects the oil production of this block to increase to 175,180 thousand BPD. Currently, the Rokan Block is the second-largest oil producer in Indonesia.

Regional Contribution

    With the transfer of the management of the Rokan Block to PHR, Syamsuar asked Pertamina to commit to contributing from the block's production to state revenue and regional revenue sharing. Therefore, not only increasing production, PHR must produce oil in the Rokan Block with more efficient production costs.

    In addition, Syamsuar charges a 10% participating interest (PI) for Regional Owned Enterprises (BUMD) as stated in the Decree of the Minister of Energy and Mineral Resources.

"The process of transferring the 10% PI must be carried out immediately in the shortest possible time," said Syamsuar.

    He also asked that PHR could involve local participation in its oil and gas operations. This means that PHR must provide the widest possible opportunities for BUMD and local companies in the field of construction services and manpower.

    In this case, Pertamina is also expected to limit itself to using its subsidiaries in its operational activities. Syamsuar also advised that PHR should synergize with local governments to implement corporate social responsibility (CSR) programs, by empowering local communities and involving local universities.

    In addition, he also urged that PHR can help solve the problem of soil contaminated with oil. One of them is by involving the local government and related communities and the authorities in a not so long period of time.

"Besides that, it also helps solve the problem of contaminated land by involving local governments, in the not too distant future," said Syamsuar.

Pertamina Hulu Rokan (PHR)

    As is known, based on the Decree of the Minister of Energy and Mineral Resources Number 1923 K/10/MEM/2018 dated August 6, 2018, the government has decided Pertamina through its affiliate Pertamina Hulu Rokan (PHR), as the manager of the Rokan Block after August 8, 2021, with participating interest (Participating Interest). 

    PI) of 100%, including the 10% share belonging to the region. The cooperation contract/PSC of this block was signed by PHR and SKK Migas on May 9, 2019, using a gross split scheme. This contract is effective starting August 9, 2021, with a contract period of 20 years.

Investor Daily, Page-9, Tuesday, Aug 10, 2021

PLN is Committed to Maintaining Electricity Supply and Reliability of the Rokan Block

    PT Perusahaan Listrik Negara (PLN) ensures the reliability of electricity supply for the Rokan Block Working Area (WK), as tangible evidence of supporting the sustainability of the oil and gas block which supports 25 percent of the total national oil production. This step is PLN's effort to maintain energy security in Indonesia.

    PLN has officially started supplying electricity and steam to the Rokan WK starting August 9, 2021, at 00.00 WIB. This is in line with the transfer of management of the Rokan Block from an oil and gas company from the United States, PT Chevron Pacific Indonesia to PT Pertamina Hulu Rokan (PHR). This is an important milestone for Indonesia. Because since 1951 has been managed by Chevron, finally the largest oil and gas block in Indonesia has returned to Indonesia.

"For PLN, this is proof that we are able to manage power plants to meet electricity needs in large-scale oil and gas working areas, such as the Rokan Block," said PLN President Director Zulkifli Zaini.

The Rokan Block Chevron

    To ensure the supply of electricity and steam in the operation of the Rokan WK, PLN and PHR have agreed and signed the Electricity and Steam Sales and Purchase Agreement (PJBTLU) on February 1, 2021. In serving the electricity and steam needs of the Rokan WK, PLN plans 2 stages, namely the transition period and the permanent period.

PT Perusahaan Listrik Negara (PLN)

    During the transition period, PLN utilizes existing power plants which will last for 3 years. PLN itself has acquired shares in the existing power plant that has been electrifying WK ​​Rokan, namely PLTG North Duri Cogen 300 MW, and is supported by PLTG Minas and Central Duri of 130 MW.

"In the short term, we will use electricity from the generator, which has been supplying electricity to Rokan for the past three years, while for the past three years we have prepared the electricity network to connect the Rokan WK with the Sumatra electricity system," said Zulkifli.

    In the second phase, the permanent service period will rely on PLN's generators and network starting in 2024. PLN will interconnect the Rokan Block system with the Sumatran electricity system, with a capacity of 400 megawatts (MW).

"PLN will also take from the Sumatra system, which has a very large availability of power and systems, starting from supply from systems in the south and north through the 275 KV system and will be 500 KV," said Zulkifli.

Pertamina Hulu Rokan's (PHR)

    In addition, PLN ensures that the supply of reliable electricity from the Sumatra System to the Rokan Block is carried out from three sources. PLN also expressed its gratitude for Pertamina Hulu Rokan's (PHR) trust in meeting the electricity needs of WK Rokan.

"With this synergy, it shows that the sons and daughters of Indonesia can manage the largest oil-producing block in Indonesia," said Zulkifli.

Investor Daily, Page-9, Tuesday, Aug 10, 2021

Pertamina Directly Steps on Gas Working on Rokan Block

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that PT Pertamina Hulu Rokan (PHR) could immediately move quickly to work on the Rokan Block, including wells drilling after its management shifted from PT Chevron Pacific Indonesia (CPI). PHR officially holds the management of the Rokan Block starting August 9 at 00:01 West Indonesia Time (WIB).

Blogger Agus Purnomo in SKK Migas

    Deputy of Planning for SKK Migas Benny Lubiantara said the progress of the transfer of management of the Rokan Block until Saturday (August 7) ​​was quite good. The smooth transition of the management of the Rokan Block is important considering that the contribution of this oil and gas block to the national oil lifting is quite significant. 

    One of the activities that must be ensured continuity is the drilling of development wells in the Rokan Block. He explained, with the agreement that has been made, the drilling of the wells program by Chevron will continue until the management of the Rokan Block shifts to PHR.

The Rokan Block By Chevron

"As soon as August 9 arrives, PHR can also immediately step on the gas, because preparations for drilling have been carried out together at the beginning," he said.

    As of Friday (August 6), referring to SKK Migas data, Chevron has successfully drilled 103 wells. Furthermore, the technical and operational data migration can be completed after CPI and PHR sign the minutes. The management of contracts needed to support operations has also been completed, among others by mirroring previous contracts so that the goods and services needed have been contracted.

PT Chevron Pacific Indonesia (CPI)

    The supply of electricity and steam is also safe after Pertamina signed a contract with PT PLN (Persero), including the procurement of gas for power plants. The licensing process and operating procedures have also been completely transferred so that they can be used by PHR. Environmental problems have also been agreed upon so that they can be resolved properly. Employment issues can also be resolved where most of the CPI workers are transferred to PHR.

PT Pertamina Hulu Rokan (PHR)

    President Director of Pertamina Hulu Rokan (PHR) Jaffee A Suardin said, as of Saturday (August 7), the preparation for the transfer of management of the Rokan Block had reached 99.5% of which 9 transition programs had been realized.

"The transfer of management of the Rokan Block will be 100% and effective when it officially switches on August 9, 2021, at 00.01 WIB," he said.

    He is optimistic that he can maintain and continue to operate the Rokan Block after the operatorship shifts from Chevron to PHR. For the drilling program, PHR will drill 84 wells and take over the CPI drilling plan of 77 wells. So, in total, his party will drill 161 wells during August-December 2021.

"We will do our best to maintain and continue to carry out massive operational activities to increase oil and gas production so that we can meet the national target of 1 million barrels per day (BPD) in 2030," said Jaffee.

    Jaffee added that in the Rokan Block, PHR will later manage a working area with an area of ​​​​about 6,453 square kilometers (km2) with 10 main fields, namely Minas, Duri, Bangko, Bekasap, Balam South, Kotabatak, Farmers, Pematang, Petapahan, Pager.

Production Up

    Under the management of Pertamina, SKK Migas projects that the production of the Rokan Block will increase. This year, the Rokan Block's oil production is targeted at 165 thousand bpd with a realization of 160,646 thousand bpd or 97.4% of the target as of the end of June. Next year, SKK Migas projects the oil production of this block to increase to 175,180 thousand bpd. To maintain production, Benny hopes that Pertamina has a more massive drilling program.

"We hope that through drilling more massive wells later by PHR, the Rokan Block production target can be achieved, maybe even surpassed. And production will start to increase at the end of this year," he said.

    In addition to drilling, the implementation of an enhanced oil recovery (EOR) program with chemicals is also expected to boost the production of the Rokan Block. Referring to SKK Migas, so far, studies related to EOR activities with chemical injections can be completed more quickly, so that dynamic studies have also been successfully completed. His party targets the approval of the plan of development (POD) for this EOR activity to be obtained this year.

"The discussion on the subsurface aspect has been completed, by the end of this year, hopefully, the POD will be completed so that the progress is expected to be on schedule," said Benny.

 Investor Daily, Page-17, Monday, Aug 9, 2021

Weaving Hope on a New Sheet

    Nearly a century ago, efforts to get crude oil out of Central Sumatra began as the beginning of Chevron's footprint in Indonesia. Now, a new leaf has opened and the story is ready to change.

    In 1924, Socal geologists led by E. M. Butterworth began to set foot in the Dutch East Indies (another name for Indonesia during the Dutch colonial period). Exploration efforts have not been easy, a decade after exploration began, these efforts have yet to bear fruit.

    Exploration activities carried out through the Nederlandsche Pacific Petroleum Maatschappij (NPPM) company also often get ridicule from competitors with the nickname Non-Producing Petroleum Maatschappij or oil companies without production.

    Not only that, in 1930 the Dutch geologists made a report predicting no oil in Central Sumatra. He stated that the area contained many layers of granite sediment that could not contain hydrocarbons.

    However, these conditions did not make Socal geologists despair to find the content of crude oil. After almost drilling 3,000 holes, finally, the potential for oil was found in Duri Field, Bengkalis.

    Starting April 1952, Minas Field started production for the first time and in February 1954, Duri Field started production. The oil produced from the two fields is 42,800 barrels per day (BPD).

the Rokan Block Chevron in Sumatra

    From the first barrel of oil was lifted in 1952 until the expiration of Chevron's production sharing contract in the Rokan Block on August 8, 2021, the total crude oil produced from the Rokan Block and three other blocks has reached 12 billion barrels. During its operation, Chevron has left various legacies in Riau, from infrastructure development to improving human resources.

    The first infrastructure built by Chevron was the construction of Duri-Dumai Road in 1958. One year later, the Siak River Pontoon Bridge and the 180-kilometer Pekanbaru-Dumai road were completed and inaugurated.

    Chevron also built SMA 1 Pekanbaru which was the first high school in Riau at that time. Chevron also inherited SMA 1 Minas, SMA 1 Dumai, Polytechnic Caltex Riau, Darmasiswa Chevron Riau, to Energy Corner which is a library in Riau.

    This legacy will become Chevron's eternal legacy in Indonesia after the end of Chevron's Rokan Block management period on August 8, 2021, at 24.00 WIB, at midnight.

PT Pertamina (Persero)

    This is in accordance with the Indonesian government's decision in July 2018 which decided that the Rokan Block would be managed by PT Pertamina (Persero) after the PT Chevron Pacific Indonesia (CPI) contract ended.

PT Chevron Pacific Indonesia (CPI)

    In its journey, the management of the Rokan Block has gone through many dynamics. Starting from investment agreements during the transition period to contain the decline in production rates, the complexity of developing an enhanced oil recovery (EOR) formula, to the transfer of power plants in the Rokan Block.

PERTAMINA'S EFFORT

    PT Pertamina, through PT Pertamina Hulu Rokan (PHR), as the relay winner for the management of the Rokan Block, has long ago designed and implemented a transition program so that the operational performance of the work area is not disrupted.

PT Pertamina Hulu Rokan (PHR)

    Pertamina Hulu President Director Rokan Jaffee A. Suardin said all stages of the nine transition programs had been implemented. Jaffee said that in the Rokan Block, his party manages a working area of ​​6.453 km2 with 10 main fields, namely Minas, Duri, Bangko, Bekasap, Balam South, Batak City, Farmers, Pematang, Petapahan, and Pager.

"By switching operatorship from CPI to PHR, we will make maximum efforts to maintain and continue to carry out massive operating activities to increase oil and gas production so that we can meet the national target of 1 million barrels in 2030," he explained.

    The oil production target of 1 million BPD in 2030 is indeed reasonable to mention. How not, the Rokan Block has now become one of the backbones of national oil production so that the government's ambitious target is highly dependent on the performance of the block. In the hands of Pertamina, production in the Rokan Block is even targeted to reach 175,000-180,000 BPD.

The Rokan Block Oil Working Area

    This target is higher than the production target set in the 2021 State Revenue and Expenditure Budget (APBN) of 165,000 BPD. The increase in production will result from the increase in the number of drillings that will be carried out by Pertamina.

    For the drilling program, PHR will drill 84 wells and the CPI program plans to carry over 77 wells to PHR, bringing a total of 161 wells during August-December 2021.

    To support the smooth running of these drilling activities, as many as 291 contracts were mirrored and have been completed 100%. In addition, 60 new contracts for pre-EOC needs have been awarded 100% progress status.

    Oil and gas practitioner Tumbur Parlindungan said there are a number of important things that need to be considered by Pertamina when managing the Rokan Block, including maintaining production capacity and technology transfer.

    With the entry of Pertamina, it is hoped that there will be new sources in the Rokan Block. The reason is, with the condition of the field being old, Pertamina cannot rely solely on the existing field.

"If there are no new findings, production will not be able to increase," said Tumbur.

    Meanwhile, for technical issues, Pertamina inevitably has to cooperate with strategic partners to be able to obtain the better technology needed to manage the Rokan Block.

    Executive Director of ReforMiner Komaidi Notonegoro believes that in the oil and gas business, it cannot only refer to an increase in certain target volumes, but it is also necessary to pay attention to more economical production costs.

According to him, if production in the Rokan Block is increased to a certain level, the resulting production costs must still be included in the economic scale of the business.

    Apart from a number of challenges that lie ahead, the presence of Chevron and the Rokan Block itself has become history for the oil and gas industry in Indonesia. Finally, Chevron's departure from Bumi Andalas should be closed with the words "Thank you Chevron and welcome Pertamina".

Bisnis Indonesia, Page-7, Monday, Aug 9, 2021

SKK Migas Encourages Completion of Goods and Services Contracts

 

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) continues to oversee the transfer of management of the Rokan Block, including contracts mirroring for the procurement of goods and services. This process must be completed immediately to keep the Rokan Block's oil production from decreasing after changing operators.

PT Chevron Pacific Indonesia (CPI)

    To ensure that matters related to the contract for the procurement of goods and services run smoothly, SKK Migas together with PT Chevron Pacific Indonesia (CPI) and PT Pertamina Hulu Rokan (PHR) held an online vendor day. This activity was attended by more than 550 providers of goods and services.

Blogger Agus Purnomo In SKK Migas

    Acting Deputy for Procurement Control of SKK Migas Rudi Satwiko said the activity was part of an effort to ensure contracts and supplies continued smoothly during the transfer of management of the Rokan Block from CPI to PHR. This is important considering that the Rokan Block has very promising potential and can become one of the backbones to achieve the production target of 1 million BPD in 2030.

"The smooth transfer of management requires support from various parties, including the providers of goods and services in the Rokan Block," he said.

    According to Rudi Satwiko, since its first production in 1951, the Rokan Block has contributed to development for 70 years. This block once reached its peak of glory with oil production reaching more than 700 thousand barrels per day (BPD). Even now, this oil and gas block is still a mainstay with oil production of around 160 thousand BPD.

"The Rokan Block has contributed an average of 46 percent to national oil production, although currently, its production has decreased to 24 percent of national production," said Rudi.

    Vice President Procurement & Contract of CPI Sigit Pratopo said that his party is committed to maintaining optimal operations of the Rokan Block, including the provision of goods and services by vendors. During the preparation of contract termination and transition to PHR, his party has submitted data and information to SKK Migas and PHR which includes copies of contracts and purchase orders (PO) for contracts mirroring, copies of local vendor contracts, inventory data, and warehouse management processes.

"After the transition, CPI will continue to provide support, including continuing the process of closing contracts and POs to ensure the fulfillment of the obligations of partners providing goods and services and processing invoices for contracts and POs under the CPI entity," said Sigit.

    PHR's Business Support Project Leader Danang Ruslan Saleh explained that contracts mirroring will ensure the sustainability of contracts that have been signed when vendors become CPI partners. From a total of 379 active contracts, his party determined 318 contracts according to PHR needs and continued with the contracts mirroring process. Currently, his party has completed mirroring for 298 contracts with 4 contracts in the amendment process.

PHR

"The amendment to the contract for the provision of drilling is related to the number of drilling activities that will be added by PHR after the transfer of management so that it requires more rigs than the number in the existing contract," he said.

    Head of the Division of Supply Chain Management and Cost Analysis of SKK Migas Erwin Suryadi said, to ensure that the issue of the procurement contract for goods and services was immediately resolved, his party revised the Work Procedure Guidelines number 007 James Bond, (PTK 007) by including contract mirroring terminology. 

    This step is to maintain the continuity of the supply of goods and services so that PHR can prepare everything, including the supporting infrastructure. Thus, oil production in the Rokan Block will not decrease.

the Rokan Block by Chevron

“Contract mirroring for 1 year is not part of the project. As of August 17, 2021, PHR will have joined the centralized integrated vendor database (CIVD) to make it easier for vendors and PHR to provide goods and services in accordance with existing regulations," said Erwin.

Engaging Region

    Danang added that PHR will continue the Local Business Development (LBD) activities that have been initiated by CPI. In addition to the contract, currently PHR has prepared a work order for the next month so that after the transfer of management there will be no problems in providing goods and services to support the operations of the Rokan block.

"We are finalizing the list of owner contracts required by providers of goods and services when PHR has officially operated the Rokan block," said Danang.

    SKK Migas encourages this Local Business Development (LBD) program. The reason is, this program has a positive impact on local entrepreneurs. As of May 2021, for 11 years, LBD contracts reached Rp 1.27 trillion for 5,055 contracts requiring 40,400 workers. Therefore, his party asked PHR to increase the number of parties involved in various regions in Riau which currently consists of 14 rings in 1 area with 699 active LBD.

"Hopefully the number of LBD can be increased so that the benefits for the people of Riau will be greater," said Erwin.

    The management of the Rokan Block will switch from CPI to PHR on 9 August. As one of the mainstay oil and gas blocks, SKK Migas projects that the Rokan Block's oil production will increase to 175-180 thousand BPD in 2022. As of June, the realization of Rokan Block's production was recorded at 160,646 BPD or 97.4% compared to the lifting target in this year's APBN 165 thousand BPD.

Investor Daily, Page- 10, Thursday, Aug 5, 2021

Pertamina Prepares to Manage Rokan Block

 

    Pertamina is ready to take over the management of the Rokan Block on August 9. President Director of PT Pertamina Hulu Rokan (PHR) Jaffee A Suardin met with Riau Governor Syamsuar to convey his readiness for the transfer of management.

    Jaffee said PHR is ready to enter and manage the Rokan Block. A number of transitional preparations have been made, including those related to PT Chevron Pacific Indonesia (CPI) workers who are employees of PT PHR. A total of 2,691 CPI workers agreed to join PHR. So, later the Rokan Block operation will be carried out by the team, it will take a long time.

PT Chevron Pacific Indonesia (CPI)

"Then for the work contract, we have also done mirroring with CPI and it has reached 100 percent," said Jaffee.

    Jaffee also conveyed the plan for a ceremony to transfer the management of the Rokan Block from CPI to PHR on the turn of August 8 to 9, 2021. The activity was carried out online by inviting the Riau Province Regional Leadership Communication Forum and 7 regional heads of the Rokan Block working area.

Blogger Agus Purnomo in SKK Migas

"Preparations for the ceremony have been carried out by SKK Migas, CPI, and PHR, and also ensure that the transfer of management process will run smoothly and all work in the Rokan Block can run smoothly," said Jaffee.

    Riau Governor Syamsuar appreciated the presence of the Director of PHR. He hopes that the process of managing the Rokan Block from CPI to PHR can run smoothly.

The Rokan Block by Chevron

"We hope that this transfer of management will run smoothly, work in the Rokan Block will continue and production will also continue to increase," said Syamsuar.

    He also hopes that the presence of PHR in the Rokan Block can have a good impact on the people of Riau. In this regard, the regional government has prepared Regional Selected Business Entities (BUMD) to participate in the management of this participating interest. Of course, we hope that it will have a good impact on development in Riau and the welfare of the people of Riau," said Syamsuar.

    The Rokan Block with an area of ​​6,453 km2 produces around 165,000 barrels of oil per day (BPD) or 24 percent of national oil production. To increase production after the transfer of management, PHR targets to drill 181 new wells for the period August-December 2021.

    Managing Director of Chevron Indo Asia Business Unit & President Director of Chevron Pacific, Albert Simanjuntak, said the Rokan work area is a strategic asset for state and regional revenues, the community's economy, and national energy security.

“It is an honor for us to be able to manage this asset well,” said Albert.

    He thanked the dedication and performance of tens of thousands of Chevron employees, including retirees over the years.

    According to him, the strong performance of Rokan's work area so far is inseparable from the Human Resources factor behind it, namely employees with existing skills, culture, and work ethic. He is optimistic that they can make a big contribution to the new company.

Republika, Page- 9, Thursday, Aug 5, 2021

Production Targeted to Increase

 

    After officially managing the Rokan Block, PT Pertamina (Persero) through PT Pertamina Hulu Rokan (PHR) is targeted to be able to produce oil with higher achievements.

PHR

    Deputy for Operations of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Julius Wiratno said that with the number of drilling activities and the availability of more massive tools, production in the Rokan Block is targeted to increase.

"Until December 2021, with around 17-18 rigs drilling, production could be around 175,000-180,000 barrels per day," he said.

Blogger Agus Purnomo in SKK Migas

    Meanwhile, based on SKK Migas data, production in the Rokan Block throughout the first semester of 2021 by PT Chevron Pacific Indonesia (CPI) was at the level of 160,646 barrels of oil per day (BPD), this figure is lower than the target set in the 2021 State Budget of as much as 165,000 BPD.

PT Chevron Pacific Indonesia (CPI)

    President Director of PT Pertamina Hulu Rokan (PHR) Jaffee Suardin believes production in the Rokan Block can increase when the transfer of management is carried out. The reason is, throughout this year Pertamina is targeting massive drilling. PT Chevron Pacific Indonesia (CPI) plans to drill as many as 161 wells after the transfer of management in the Rokan Block which will begin on August 9, 2021.

The Rokan Block by Chevron

    Jaffee said that there will be an additional 77 wells from CPI's commitment which will not be completed until the management transfer period on August 9th. In the previous target, Pertamina planned to drill only 84 wells for 2021.

"As of December 161 wells, the target production level is maintained and can increase," he said.

    Jaffee said PT Pertamina Hulu Rokan (PHR) had prepared the resources needed to realize the plan. To realize the Wells drilling plan, 16 to 17 rigs have been prepared.

    In addition, Jaffee said that all human resources, as well as supporting materials, have been prepared so that when the transition period is over, all activities can start immediately.

"For that, we continue to make preparations, from Pertamina's side, the planned number of rigs, materials, from Pertamina's side, are ready. So, the goal is that the transfer of management process will run smoothly without any disturbances,” said Jaffee.

Bisnis Indonesia, Page- 4, Thursday, Aug 5, 2021