Pertamina Drills Sixth Well in Rokan Block

    PT Pertamina Hulu Rokan (PHR) continued to drill the sixth well using the ACS-19 rig technology in the Rokan Block, Riau Province, a week after the transfer of management. 

PT Pertamina Hulu Rokan (PHR)

    PHR President Director Jaffee Arizon Suardin said the drilling activity was carried out to maintain the level of oil production in the Rokan Block.

“Everyone worked hard from the transition period to after this management transfer. There is rig preparation work which is usually completed in six days but can be completed in three days,” said Jaffee.

    Jaffee said that his party had drilled five wells, namely the Bangko-344 P03reg5 well, the Duri P_3R33E well, the Duri 3K-49C well, two Duri 8M-75B wells, and the Bekasap #161-BK21_P01 well. Currently, as many as 25 locations are ready to be drilled or known as Ready For Drilling (RFD). Pertamina targets to drill 161 new wells by the end of this year.

    According to Jaffee, the target is part of efforts to achieve the oil production target proclaimed by the central government, namely one million barrels per day (BPD) in 2030.

“PHR is committed to supporting the achievement of the central government's target. PHR's main priority at this time is drilling," said Jaffee.

    Pertamina now operates 10 rigs which will gradually increase to 16 rigs until October 2021. In an effort to run a safe, reliable, and efficient drilling program, PHR focuses on three things, namely the consistent implementation of safety programs, the conversion of two workover rigs (350 HP) ) into drilling rigs, and achieving superior and efficient performance through the Lean Sigma program.

Nicke Widyawati

    Pertamina President Director Nicke Widyawati advised PHR to continue to focus on carrying out the government's mandate to provide the best for the country, society, and nation through the management of the Rokan Block. So that it can realize Indonesia's energy independence and sovereignty. 

the Rokan Block Chevron

    By the end of 2021, PHR plans to drill 161 new wells, including the remaining wells from the previous operator commitments. Meanwhile, in 2022, PHR plans to drill approximately 500 new wells. This is the investment commitment and the largest number of wells among other oil, and gas Working areas in Indonesia.

    The drilling activity will be supported by the preparation of an additional 10 drilling rigs so that in total there are 16 rigs and 29 other rigs for workover & well service activities which are a mirroring of the previous contract.

Based on the Decree of the Minister of Energy and Mineral Resources Number 1923 K/10/MEM/-2018 dated August 6, 2018, the government decided PT Pertamina (Persero) through its affiliate PHR as the manager of Rokan after a week (August 8) with 100% Participating Interest/PI ownership.

Republika, Page-9, Wednesday, Aug 18, 2021

The Transfer of Managing the Rokan Block is Smooth

    Transferring the Rokan Block management from PT Chevron Pacific Indonesia (CPI) to PT Pertamina Hulu Rokan (PHR), which went smoothly, could be an example of the operational transition of a giant oil and gas working area in the future.

the Rokan Block by Chevron

    Meanwhile, the smooth transfer of management in the Rokan Block is of particular concern considering that the working area is the second-largest supporter of oil production in Indonesia or around 24 percent of the total domestic oil production.

    Investment commitment agreements during the transition period are a new thing in the process of transferring the management of oil and gas working areas in Indonesia. The Rokan Block became the only working area that received investment for drilling during the transition period by its former manager.

Blogger Agus Purnomo in SKK Migas

    The day after the transfer of management of Rokan, Pertamina Hulu Rokan succeeded in continuing the drilling program that had been prepared during the transfer of management with SKK Migas and Chevron. PT Pertamina Hulu Rokan (PHR) also shipped the prime oil at the end of last week. Most recently, Pertamina Hulu Rokan drilled the sixth well, namely the Duri #3R-52B well.

PT Pertamina Hulu Rokan (PHR)

    President Director of PT Pertamina Hulu Rokan (PHR) Jaffee Arizon Suardin said a week after managing the Rokan Block or one day before the commemoration of Indonesian Independence Day, the drilling was carried out.

"There is a rig preparation work which is usually completed in six days, can be completed in three days," said Jaffee.

    Meanwhile, Executive Director of ReforMiner Komaidi Notonegoro assessed that the main key to creating a smooth transition process lies in institutional strengthening to accelerate the transfer process of the two contractors.

"If SKK Migas later becomes an institution with a strong representation, then it will know the data, know the detailed information," he said.

    In addition, Komaidi assesses the role of legal protection will also greatly determine similar processes in the future. Therefore, he hopes that the presence of the new Oil and Gas Law will make all affairs in the sector more effective.

Bisnis Indonesia, Page-5, Wednesday, Aug 18, 2021

Rokan Block Production Targeted to Reach 400 Thousand BPD

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) targets the Rokan Block oil production under PT Pertamina Hulu Rokan (PHR) to reach 400 thousand barrels per day (BPD) by 2030. This oil and gas block will support around 40% of the national oil production target of 1 million BPD in the same year.

Blogger Agus Purnomo in SKK Migas

    Secretary of SKK Migas Taslim Z Yunus said that before transferring the Rokan Block, Pertamina had conducted a study of the oil and gas block and submitted a work program proposal to the government. This proposal then made Pertamina chosen to be the manager of the Rokan Block after the contract was completed on August 9, 2021.

    His party and PHR already have a long-term strategy to optimize the production of the Rokan Block. With the transfer of management running smoothly, one thing that must be ensured in the future is that the work program is realized.

"In the end, how can production be increased from 165,000 to 400,000 BPD by the end of 2030," he said in the Energy Corner of CNBC TV Indonesia.

    For the short term, the mapping will be carried out for the production target that has been set for an average of around 165 thousand BPD. Furthermore, in the medium term, the strategy is to increase oil production and investment significantly. 

    Some of the projects that will be worked on are the monetization of the potential in the Telisa formation, optimization of production by injection of water (waterflood) and steam flood, as well as Enhanced Oil Recovery (EOR) by injection of surfactant in Minas Field in 2024-2025.

“For the long term, full-scale EOR chemical [implementation] for other fields, undeveloped and exploration monetization, and non-conventional oil and gas potential monetization. This is what is interesting to develop in the Rokan Block,” said Taslim.

    These programs are in accordance with the definite work commitments (KKP) promised by Pertamina worth US$ 500 million or around Rp. 7.2 trillion. Some of the activities that will be funded by this KKP are an EOR study worth US$ 4 million, drilling 11 exploration wells at US$ 69.8 million, drilling five Telisa wells at US$ 18.1 million, stage-1 CEOR 7 pattern US$ 247 million, and stage-1 steam flood Kulin or Rantau Bais US$ 88.6 million.

    From the aspect of drilling development wells, he said it would continue to rise in the future. This year, Pertamina will drill a total of 161 wells. Next year, the number of wells drilled will increase to 500 wells. In the following years, the number of wells drilling will be maintained depending on the evaluation results of several oil and gas fields in the Rokan Block.

Nicke Widyawati

    Previously, Pertamina President Director Nicke Widyawati said that she had prepared a budget of up to US$ 2 billion for investment in the Rokan Block until 2025. This budget will be used to fund planned programs, including EOR projects and the development of unconventional oil and gas potential.

Support 40%

    Director-General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM) Tutuka Ariadji emphasized that the Rokan Block has a significant contribution to achieving the national oil production target of 1 million BPD in 2030. 

the Rokan Block Chevron

    Currently, the contribution of oil and gas block production is estimated to reach 24-24 30%. However, this contribution will increase with the development of unconventional oil and gas potential and untapped resources, as well as EOR projects.

"The hope is that from the initial target, the contribution will be even greater," said Tutuka.

    If the 400 thousand BPD oil production target is realized by the end of 2030, Taslim added, the Rokan Block will contribute up to 40% of the 1 million BPD target.

"Therefore, we hope that the projects that have been proposed by Pertamina can be implemented and there are no licensing barriers," he said.

    Along with the increase in oil production, Tutuka also hopes that the contribution of the Rokan Block to state revenues will increase. In recent years, it is acknowledged that the contribution of state revenues from this oil and gas block has continued to decline due to various things, one of which is the Covid-19 pandemic. In fact, in 2016-2018, its contribution continued to rise.

Investor Daily, Page-9, Saturday, Aug 14, 2021

After Block Rokan Returns to Indonesia

    After 97 years in the hands of PT Chevron Pacific Indonesia (CPI), the Rokan Block is finally managed independently by Indonesia starting August 9, 2021. The oil and gas block located in Riau Province is now managed by PT Pertamina [Persero] through its business unit, PT Pertamina Hulu Rokan [PHR].

PT Pertamina Hulu Rokan [PHR]

    The Rokan Block is one of the three largest oil blocks that support national oil and gas production. Until the first semester of this year alone, Blok Rokan supports 24 percent of national oil and gas production. According to SKK Migas records, the Rokan Block's production reached 160,646 barrels per day. In fact, the Rokan Block is an old oil field that has been operating for almost a century.

Blogger Agus Purnomo In SKK Migas

    However, in addition to the still large production, around the oil and gas field, there are still potential reserves that can be developed. Since May 2019, the government has officially handed over the rights to manage the Rokan Block to Pertamina. Two years before Chevron contract period ended, various efforts were made by the two companies to make the transition to management. President Joko Widodo [Jokowi] welcomed the transfer of management of the Rokan Block to Pertamina.

President Joko Widodo [Jokowi]

"Congratulations on the return of the management of the Rokan Block to Indonesia and congratulations on working for the entire team from Pertamina," Jokowi said in a statement videos uploaded by Pertamina through their social media accounts.

    Jokowi said the transfer of management of the Rokan Block was a challenge to prove Indonesia's capabilities. Therefore, he also advised that the productivity of the Rokan Block would not decrease after being managed by Pertamina.

"Don't let the productivity of the Rokan Block decrease even after we manage it ourselves," he said.

    The President asked Pertamina to work hard to maintain the sustainability of the Rokan Block as a support for national oil production and increase benefits for the region. Jokowi believes Pertamina is capable of managing the Rokan Block.

the Rokan Block Chevron

    One day after the Rokan Block was officially managed by Pertamina, SOE Minister Erick Thohir directly inspected the Rokan Block. Erick visited Central Gathering Station ll), Duri Steamflood [CGS ll) DSP), Dori, Bengkalis. 

Erick Thohir 

    Erick Thohir reviewed the utilization and recycling of produced water in a high-tech and environmentally friendly steam flood system. The facility at CGS II is also the largest for the Duri field by processing 200 thousand barrels of fluid per day and oil production of around 19 thousand barrels per day. day.

    During the visit, Erick also had a dialogue and gave motivation to the workers, he also appreciated the number of CPI workers who joined PHR.

"I really appreciate you with open arms, 98 percent of them have joined. Let's work together to improve SOEs," said Erick.

    Erick wants the Rokan Block to increase production, especially for state income. In addition, PHR is also expected to provide public services that have an impact on the welfare of the community.

 "What's interesting is that we [SOEs] also run public services, one of which is through CSR, especially at this time for handling Covid-19," said Erick.

Nicke Widyawati

Eco Friendly

    Pertamina President Director Nicke Widyawati when accompanying Erick Thohir to visit the Rokan Block also explained Pertamina's business vision to PHR workers. Nicke said Pertamina wanted an energy transition from fossil fuels to New and Renewable Energy [EBT]

"Therefore, we must focus on changing our operations towards being more environmentally friendly," said Nicke.

    According to Nicke, Pertamina has made a number of efforts in responding to the energy transition for business continuity in the future. One of these efforts is to integrate refineries with petrochemicals.

"We will enter petrochemicals whose growth will continue to increase. In the last five to 10 years, the growth was 3.5 percent and is predicted to increase to 5.5 percent per year. So, we will switch from fuel to petrochemical-based on the oil we have,” said Nicke.

    The Rokan Block stretches across five regencies in Riau Province, namely Bengkalis, Siak, Kampar, Rokan Hulu, and Rokan Hilir regencies. This strategic oil block is the second largest in Indonesia with an oil production target of around 165,000 barrels per day in 2021 or around 24 percent of production. national.

    Pertamina has expressed its commitment to maintaining production after the transfer of management by carrying out predetermined drilling in the period August-December 2021 as many as 163 wells. The total consists of 84 new wells and 77 ex-Chevron wells. Next, in 2022, It is planned that there will be an additional 500 wells.

    Nicke previously emphasized that Pertamina would strive to maintain the production of the Rokan Block. Pertamina will carry out an advanced oil recovery (EOR) project to carry out aggressive drilling.

    Pertamina has allocated US$2 billion by 2025. This fund will be used by Pertamina for drilling, development, and maintaining production. Nicke added that Pertamina is also committed to exploring the Rokan Block because there are still potential reserves that can be developed.

"There are still many non-conventional fields that can be developed to support national production," said Nicke.

    Not only the Rokan Block who returned to Indonesia. One of the large power plants in Rokan which also supplies steam in the Rokan Block, namely the Mandau Cipta Power Nusantara (MCTN) Power Plant, has been officially managed by PT PLN (Persero)."

    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.

    To ensure the supply of electricity and steam in the operation of the Rokan WK, PLN and PHR have agreed and signed a power and steam sale and purchase agreement (PJBTLU) on February 1, 2021. During the transition period, PLN utilizes existing power plants that will last for three years. PLN has acquired shares of the existing power plant which has been electrifying WK ​​Rokan, namely PLTG North Duri Cogen 300 MW and 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, 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).

Republika, Page-1, Thursday, Aug 12, 2021

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