Saturday, 31 October 2020 | 16:35 WIB

Pertamina Targets Drilling 20 Oil Wells in Rokan Block

Pertamina Targets Drilling 20 Oil Wells in Rokan Block (warkot)

JAKARTA, NETRALNEWS.COM - State-owned energy company PT Pertamina (Persero) targets conducting 20 oil well drillings in 2020, after being officially designated as the manager of the Rokan Block.

Fajriyah Usman, Vice President of Corporate Communication at Pertamina, said that in July 2018, the Government through the Ministry of Energy and Mineral Resources (ESDM) decided to entrust the management of the Rokan Block to Pertamina.

Fajriyah said that with the support of the Government, Pertamina continued to work on the transition process for the management of the Rokan Block to run smoothly in order to maintain the level of production when the transfer of management begins in August 2021.

The management of the Rokan Block by Pertamina after August 2021 has been stated in the Production Sharing Contract signed by Pertamina's subsidiary, PT Pertamina Hulu Rokan, with SKK Migas in May 2019.

"We won the Rokan Block tender, so that Pertamina has been legally entitled to Participating Interest (PI) or management rights as well as being the operator of the Block for the next 20 years from August 2021 to 2041. To ensure production continues to run well during the transition period, Pertamina has also prepare investment for drilling in 2020, "said Fajriyah.

As an initial assumption, he continued, in order to be able to restrain the rate of natural production decline, Pertamina targets 20 wells to be drilled this year.

To be able to realize the drilling program, until now Pertamina continues to hold intensive discussions with Chevron Pacific Indonesia (CPI) as the current PI owner, as well as communicating with the Government. Pertamina continues to encourage the transition to the management of the Rokan Block to be completed in 2020.

"Discussions with CPI continue to reach agreement, so we hope the Rokan Block transition process will run smoothly," Fajriyah said.

According to him, Pertamina learned from experience in the Mahakam Block. Before management rights shifted to Pertamina, the drilling of wells that drastically reduced from 44 wells in 2016 to 6 wells in 2017 had a significant reduction in oil and gas production when the transfer of management began in 2018.

Even though afterwards, Pertamina continued to boost drilling and investment so that it succeeded in achieving higher production yields than the targets that the operator had previously planned.

In addition to drilling, other efforts that have been made are synergy with Pertamina's subsidiaries by appointing Pertamina Gas (Pertagas) and PT Perusahaan Gas Negara Tbk (PGN) to work on the Rokan Block downstream pipeline replacement project.

The pipeline is planned to connect several fields, namely Minas-Duri-Dumai and Batam-Bangko-Dumai. Pipe replacement is needed before the Rokan Block switches to Pertamina because the existing pipes are too old and have the potential to disrupt the production of the Rokan Block if it continues to be used. Pertamina targets the construction of the downstream pipeline to be completed in August 2021 before the CPI contract expires.

Based on data, the Rokan Block is the largest oil block in Indonesia. The 6,220 kilometer block has 96 fields with three fields having good oil potential namely Duri, Minas and Bekasap.

With Pertamina's Rokan Block managed by August 9, 2021, the contribution of Pertamina's oil production compared to national oil production will increase from 48 percent in 2019 to 60 percent in 2021.

The Rokan Block has been in operation for 68 years since 1952. It can be said that the block is mature enough so that it needs special efforts to continue to optimize existing resources and restrain the rate of natural decline.

Efforts to increase production of the Rokan Block are planned by Pertamina through the optimization of the development of production fields both through Primary, Secondary/Waterflood and Tertiary Recovery (Steamflood and Chemical EOR) activities. Another effort is by investing in the overall scope of work to curb the rate of natural decline and increase production by increasing the recovery factor in the field. The integrated investment is expected to have a significant effect on the Government's and Pertamina's revenues.