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Friday, April 16, 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.

    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'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. 

    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

To Boost Oil and Gas Reserves, BP Adds Investment of US $ 4 Billion


    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that BP Indonesia will increase its investment by the US $ 4 billion. One of these funds will be used to increase the oil and gas reserves of the Tangguh Liquefied Natural Gas / LNG) project.

Blogger Agus Purnomo in SKK Migas

    Head of SKK Migas Dwi Soetjipto said BP conveyed this additional investment plan when meeting SKK Migas management last week. BP plans to develop the Ubadari Field in the Tangguh LNG Project and work on the Carbon Capture, Utilization, and Storage (CCUS) Project.

"We are happy because it means that the efforts made by SKK Migas and the government to increase investment have yielded results," he said.

    He explained that the Ubadari Field development was intended to increase the proven reserves of the Tangguh LNG Project. Gas production from this field will then be used to support the operations of the Tangguh Train 1, 2, and 3 LNG Train. If this additional gas production is realized, BP can expand its LNG market.

"The Ubadari field was discovered in 1997, and exploration drilling began in 2017," said Dwi.

    According to him, BP will also work on the CCUS project at Tangguh. CCUS is a technology that can capture carbon dioxide (CO2) which is released into the atmosphere so that it can reduce carbon emissions. The implementation of CCUS in the Tangguh Project will support Indonesia's efforts to reduce carbon emissions by 29% to 41% by 2030 under the Paris Agreement. Implementing CCUS will cut carbon emissions by around 45%.

the Tangguh Project Papua

"Apart from making a major contribution to the government's commitment to protecting the environment, [CCUS Project] will also increase production. Another advantage, this activity will also keep the Tangguh LNG Plant competitive, especially in dealing with buyer countries that are sensitive to environmental issues, "Dwi explained.

    To realize the investment plan, BP will immediately discuss with his party the technical and economic issues of the project. This discussion is expected to immediately agree on the preparation of the second Plan of Development / POD which will be used as the basis for the Ubadari Fieldwork.

    Dwi hopes that BP's steps to increase this investment will soon be followed by other contractors. Moreover, entering March 2021, world oil prices will improve at the level of US $ 60-70 per barrel. The increase in global oil prices was faster than analysts had predicted.

"The world oil price situation is recovering faster and in March 2021 it has even exceeded the average world oil price in 2019, it is hoped that this will encourage KKKS (cooperation contract contractors) to increase exploration activities outside of the agreed program in the work plan and budget ( work, program, and budget / WP & B) 2021, "said Dwi.

    Currently, BP is also working on Train-3 at the Tangguh LNG Plant, worth US $ 8.9 billion. Referring to SKK Migas data, up to the third quarter of last year, work on the project's onshore facilities had reached 88.27% and offshore facilities 98.27%. 

    The Tangguh Train-3 project is targeted to start operating in the last quarter of this year with an estimated peak gas production of 700 million standard cubic feet per day / MMscfd and 3 thousand barrels of oil per day (BPD). The completion of Train-3 will increase the capacity of the Tangguh LNG Plant to 11.4 million tons per year.

    Last year, BP managed to record gas production of 1,074 MMscfd and is targeted to increase to 1,200 MMscfd this year. BP holds a 37.16% stake in the Tangguh Project. Other Tangguh contract partners are MI Berau B.V. (16.30%), CNOOC Muturi Ltd. (13.90%), Nippon Oil Exploration (Berau), Ltd. (12.23%), KG Berau / KG Wiriagar (10.00%), Indonesia Natural Gas Resources Muturi Inc. (7.35%), and Talisman Wiriagar Overseas Ltd. (3.06%).

Investor Daily, Page-10, Monday,  March 22, 2021

Kepodang Field supplies gas again


    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that the Kepodang Field, Muriah Block, returned to flow gas since last February. This gas supply is around 20 million standard cubic feet per day / Mmscfd. 

Blogger Agus Purnomo in SKK Migas

    SKK Migas Operations Deputy Julius Wiratno said that the gas supply from the Kepodang Field has been flowing since some time ago to PLTGU Tambaklorok owned by PT PLN (Persero).

Kepodang Field

"We have returned gas from the Kepodang Field some time ago at a rate of around 15-20 MMscfd," he said.

    This was also confirmed by the Regional Business Director for Java, Madura, and Bali PLN Haryanto WS.

"It is true, the gas from the Kepodang Field has been flowing again," he said.

    Kepodang Field, Blok Muriah started producing 56 MMscfd of gas for the first time at the end of August 2015. This gas supply is supplied by the Kalimantan-Java (Kalija) I pipeline managed by PT Kalimantan Jawa Gas (KJG) to the Tambak Lorok in Semarang Center Java Steam Gas Power Plant (PLTGU) belongs to PLN. 

Blogger Agus Purnomo In Petronas PC Ketapang II

    However, in July 2017, Petronas stated that the Kepodang Field was in force majeure because reserves did not match predictions.

    This field gas production was then stopped on September 23, 2019. PT Saka Energi Indonesia then received permission from SKK Migas to restart gas production in the Kepodang Field.

    In the future, his party cannot confirm whether the gas production at Kepodang Field can be increased. The reason is that the field development plan is still being discussed by Saka Energi.

"Regarding the next development plan, we are still evaluating it by considering Saka's potential," he said.

    Director of Strategy and Business Development, Syahrial Mukhtar, once revealed that the Kepodang Field has the potential to produce natural gas on average around 15 billion British thermal units per day / BBTUD for 37 months since the first gas flow (gas in).

    This supply is planned to be channeled to PLTGU Tambak Lorok in Semarang and industrial customers in Central Java with a total volume of around 10-20 Mmscfd. PGN has been involved in managing the Kepodang Field, Muriah Block from the start through Saka Energi Muriah Limited (SEML) with a 20% PI ownership.

Blogger Agus Purnomo in PGN Saka Energi Muriah Limited

    However, Petronas Carigali Muriah Limited (PCML) and SEML have signed a legal document for the transfer of Petronas' participating interest or Deed of Assignment (DoA) participating interest shares at the end of January. Thus, now SEML holds 100% participating rights in the Muriah Block.

Investor Daily, Page-9, Saturday,  March 20, 2021

Two Upstream Oil and Gas Projects Will Soon Onstream

    The Special Task Force for Upstream Oil and Gas Business Activities or SKK Migas stated that two projects will start producing in March and April 2021.

    Deputy for Operations of SKK Migas Julius Wiratno said that at the end of March 2021 there would be additional projects to complement domestic crude oil production and the Belato field.

Blogger Agus Purnomo In SKK Migas

    The project is being carried out by the cooperation contract contractor Belida Sele Raya Merangin Dua in Jambi, South Sumatra.

“One well added and a simple tie-in with a flowline. The production is around 500-800 barrels of oil per day, ”he said.

    He emphasized that there are projects that will increase domestic production very large. At the end of April 2021, SKK Migas targets the East Sepinggan Merakes project to be onstream. The project operated by Eni East Sepinggan ltd. It is targeted to increase domestic gas production by around 350 MMscfd-400 MMscfd. The project started in 2019 with an investment of US $ 1.3 billion.

    The project was delayed last year due to the Covid-19 pandemic. The main obstacle to working on the project was restrictions on the movement of goods and human resources. Later, the gas produced from the Merakes field will be flowed to the Bontang LNG refinery to fulfill existing market commitments.

the Merakes field

    Throughout 2021, SKK Migas targets as many as 12 upstream oil and gas projects to operate. That number is an increase of one project compared to last year's target of 11 projects.

"The project value is the US $ 354 million and the potential for additional oil production is 27,000 barrels of oil per day and gas 492 MMscfd," said Julius.

    PT Perusahaan Gas Negara Tbk. (PGN) will build a pipeline interconnection connecting the South Sumatra West Java transmission pipeline with a length of 1,000 km to the West Java Area transmission pipeline with a length of 525 km.

    PGN's Director of Infrastructure and Technology Redy Ferryanto said that through the integration of the transmission pipe, gas from the Sumbagtengsel gas field in the SSJW I-Bojonegara-Cikande-Bitung pipeline will be connected to Bitung Station on a WJA pipe with a pipe size of 24 inches.

    Work on the interconnection of the 1.4 km pipeline will start in March 2021 and is targeted to be completed in the fourth quarter of 2021.

"Bitung Station will supply gas from SSWJ with a maximum capacity of approximately 165 BBtud for the gas needs of Pupuk Kujang Cikampek [PKC] and the Balongan Refinery Unit, as well as a source of supply to anticipate the natural decline in gas supply in the western Java production field," he said.

 Bisnis Indonesia, Page-4, Friday,  March 19, 2021

Tangguh LNG Operators are 85% from Papua


    Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif reiterated the Government's commitment that in 2029, as many as 85% of the operator workforce at Tangguh LNG will come from Papua. This was conveyed by the Minister of Energy and Mineral Resources while attending the Graduation Ceremony of the BP Berau Papuan Technician Apprentice Program, which was held virtually.

    Arifin also expressed his appreciation to the Cooperation Contract Contractor (KKKS) BP Berau for the dedication given to carrying out the apprenticeship program, especially for these children from West Papua.

"It is hoped that the graduates will succeed in becoming part of the Tangguh LNG operation so that it will have an impact on the welfare of the family and also the communities around Tangguh LNG operations in particular and the people of West Papua in general," said Arifin.

Blogger Agus Purnomo in SKK Migas

    Also attending the event were Director General of Oil and Gas Tutuka Ariadji, Deputy Head of SKK Migas Fatar Yani, Deputy Governor of West Papua Mohamad Lakotani, Regent of Teluk Bintuni Petrus Kasihiw, and BP Regional President of Asia Pacific Nader Zaki. 

    With the increasing number of domestic children taking part in the oil and gas industry, the Minister hopes that it can have a real impact on improving the performance of the local oil and gas industry.

    Since this apprenticeship program began in 2016, to date, 71 participants have completed the apprenticeship program, of which 68 have worked at Tangguh LNG. The graduates in this third period have gone through a three-year training period. The knowledge and skills learned are not only beneficial in operating the Tangguh LNG plant, but also for various refineries in Indonesia and abroad.

"Through a three-year apprenticeship program, I hope that the participants will be able to meet the high standards required of a professional in the oil and gas industry," he added.

    The Minister of Energy and Mineral Resources also asked the graduates not to become complacent. On the other hand, they must continue to improve their respective abilities so that one day they will not only become operators but also become one of the leadership ranks or even become experts in various domestic and foreign oil and gas companies.

Investor Daily, Page-9, Thursday,  March 18, 2021

Gas Supply from Kepodang Field Has Been Flowing


    Gas distribution from Saka Energi Muriah Ltd (SEML) 's Kepodang Field to meet the gas needs of the Tambak Lorok Power Plant in Central Java Province has started in February 2021. Acting Head of Program and Communication Division of SKK Oil and Gas (SKK Migas) Susana Kurniasih revealed the distribution gas that was previously delayed has been resumed.

Blogger Agus Purnomo in SKK Migas

"The flow has started since February, to be precise February 19, 2021," said Susana.

    Susana continued that the gas distribution volume for the Tambak Lorok Semarang Gas Power Plant (PLTG) is around 8 billion British Thermal Units per Day (BBTUD) to 10 BBTUD. SKK Migas Operations Deputy Julius Wiratno confirmed that the distribution of gas from the Kepodang Field has been carried out.

"Everything is channeled to PLN according to production which is only about 20 MMSCFD," explained Julius Wiratno.

Blogger Agus Purnomo in Petronas Carigali 

    The Muriah Operatorship has shifted from Petronas Carigali Muriah Ltd (PCML) to Saka Energi Muriah Limited (SEML). After the legal document for the transfer of the participating interest or Deed of Assignment (DoA) was signed by the two contractors at the end of January last year. 

Kepodang Field

    Kepodang Field is part of the Muriah Work Area, which is located off the coast of East Java. This field started producing natural gas for the first time of 56 million cubic feet per day (MMSCFD) at the end of August 2015.

Kontan, Page-13, Wednesday,  March 17, 2021

Pertamina Remains Resilient


    PT Pertamina (Persero) became one of the few global oil and gas companies that were able to score a net profit throughout 2020. Last year, Pertamina was able to reverse its loss position in the first semester of 2020. Profits from the Indonesian government-owned oil company are said to reach Rp. 14 trillion at the end of the year.

Nicke Widyawati

"Efforts are being made to increase the productivity of upstream oil and gas and refineries, as well as efficiency in all fields, namely cutting the Opex by 30% and prioritizing the investment budget," said Pertamina President Director Nicke Widyawati.

    A number of global oil and gas companies have experienced different conditions. Over the past year, Shell recorded a loss of US $ 21.68 billion or around Rp 303 trillion, Exxonmobil US $ 22.44 billion or around Rp 314 trillion, Chevron US $ 5.5 billion or around Rp 77 trillion, BP US $ 20, 3 billion or around Rp. 284 trillion, and Petronas 21 billion ringgit or around Rp. 73.5 trillion.

    Meanwhile, Petrobras earned a profit of US $ 1.1 billion or around Rp 15 trillion, while Pertamina is claimed to have earned a profit of US $ 1 billion or around Rp 14 trillion over the past year. 

    ExxonMobil CEO Darren Woods said last year, the company was facing market conditions that were more challenging than they had experienced before. The effects of the Covid-19 pandemic will significantly affect performance results in 2020.

"We are responding decisively to fixing our fee structure permanently," he said.

    Chevron CEO Mike Wirth said that when market conditions deteriorated last year, his side quickly cut capital spending by 35% from 2019 and lowered operating costs. In 2020, Chevron will also increase renewable energy production and increase investment in low-carbon technology. 

    Energy Watch Executive Director Mamit Setiawan assessed that last year was a grim period for the global oil and gas industry, including at home, due to pressure from the Covid-19 pandemic.

Bisnis Indonesia, Page-4, Wednesday,  March 17, 2021

Chevron Delivers Rokan Block Data to the Government


    Ahead of the transfer of management, PT Chevron Pacific Indonesia (CPI) as the current operator of the Rokan Block has completed a large number of asset data collection and submitted production, exploration, and operational activity support data to the Government of Indonesia through the Special Task Force for Upstream Oil and Gas Business Activities. (SKK Migas). Chevron has also started sharing this data with PT Pertamina Hulu Rokan (PHR) as the next Rokan Block operator.

"Our company is committed to carrying out the transition process of the Rokan Block in a safe, reliable, and smooth manner so that this block continues to provide optimal benefits for the country and the people of Indonesia. 

    In the future, 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 PT CPI's Corporate Communication Manager Sonitha Poernomo.

Sonitha Poernomo

    From August 2020 until now, PT CPI 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. 

Blogger Agus Purnomo in SKK Migas

    Chevron has completed submitting the data ahead of schedule to support a smooth transition process. Chevron also coordinates intensively with SKK Migas and PHR to discuss various technical aspects of the transition process. Chevron is also trying to maintain the Rokan Block oil and gas production.

"Last year we were still able to meet the production target set by the Government," said Sonitha.

    In addition, Chevron has also started an incremental drilling program at the end of December 2020 in accordance with the Heads of Agreement (HoA) with SKK Migas which was signed in September last year.

the Rokan Block

"The HOA is critical to slowing down the rate of decline in natural production before the end of the Rokan Block management transfer period and will continue to meet Indonesia's energy needs," said Sonitha.

    President Director of PT Pertamina Hulu Energi (PHE) Budiman Parhusip is committed to transferring employment to Chevron workers in the Rokan Block with conditions that have been mutually agreed upon with related parties. In addition, his party has also collaborated with several universities in Riau, including for Social and Environmental Responsibility (TJSL) activities.

    The TJSL program will be prioritized to improve the independence of the Riau people in the fields of education, health, economy, and environmental preservation. Planning for the TJSL program also involves local governments.

"As for the Local Business Development (LBD) program which is currently being built and implemented by the CPI, it will first be discussed further.

    Coordination with CPI is needed to obtain 260 LDB contract schemes and data before the socialization is carried out, "said Budiman.

Investor Daily, Page-10, Tuesday,  March 16, 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.

    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%.

    Regarding employment, 70% has been completed where an agreement has been reached for the transfer of employees between PT CPI and PHRPHR 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