JAKARTA (TheInsiderStories) – PT Chevron Pacific Indonesia, unit of Chevron Corp., (CVX.N) prepared budget US$152 million to develop Rokan Block starting November 2020, said the official on Friday (04/17). Earlier the United States-based oil producer agreed to operates the block until the contract end on August 2021.
According to deputy head of the Special Task Force for Upstream Oil and Gas Business Activities (SKKMigas), Fataryani Abdurrahman, the there are several options that have been discussed before the block hand it over to state-owned energy firm PT Pertamina.
In the first stage, Chevron will drills 11 wells and next year will continue to 93 wells plus 11 converted wells. He stated, “The eleven wells its expecting could produces 3,000 barrels per day (bpd) and in 2021 the production is around 9,000 bpd,” he told the reporters today.
Earlier, the oil and gas producer rejected the government order to keep the production of Rokan block before the contract ended. The company rejected the order, caused according to the president director, Albert Simanjuntak, the step was considered uneconomical.
After the contract ends, the giant block in Riau province, will be taken over by Pertamina. The CEO, Nicke Widyawati has urged Chevron to involve her companies in the transition period to maintained the wheels’ production capacity.
The minister for energy and mineral resources (MEMR), Arifin Tasrif, also expressed his hope that the US producer would maintain the production of Rokan block. He asserted if there were things that had not been agreed upon, his side requested that the Cooperation Contract Contractor could respond to the decline in production.
The Rokan Block is one of Indonesia’ mainstay oil fields. Previously, this block had succeeded because of its highest oil production among other oil and gas blocks. The block covers an area of 220 kilometers with more than 96 oil wells. Three of them have great oil potential, namely Duri, Minas and Bekasap wells.
From Pertamina’ data, Rokan‘ oil production has indeed declined, from 338,000 barrels bpd in 2012 to 190,000 bpd in 2019. The number of drilling activities in the Rokan block fell from 625 drilling in 2014, to 280 drilling in 2015, then 119 drilling in 2016, and finally 0 drilling in 2019.
The oil and gas holding company, predicts that in August 2021, when Rokan is transferred to Pertamina, the average production figure will be around 140,000 bpd.
by Linda Silaen, Email: firstname.lastname@example.org