The national state-owned oil and gas company, PT Pertamina, is looking for potential new partners in the Rokan Block, Riau, which will take over starting August 2021 from PT Chevron Pacific Indonesia - Photo: Privacy

JAKARTA (TheInsiderStories) – The national state-owned oil and gas company, PT Pertamina, is looking for potential partners in the Rokan Block, Riau, which will take over starting August 2021 from PT Chevron Pacific Indonesia. This was revealed by the president commissioner, Basuki Tjahaja Purnama, yesterday.

In addition, Pertamina will also reduce its share ownership in some geothermal projects. He stated, “Talking on the new and renewable energy such as geothermal energy, Pertamina is okay with only having a 25 percent stake. We will share another 75 percent stake with partners. That is what we will do in the future,” he said.

Beside looking for new partners, he continued, Pertamina wants to acquire a number of local or foreign oil and gas fields. He asserted, the company wants to take over at least 50 percent of participating ownerships in a number of oil and gas fields.

As reported, the government has a production target of 1 million barrels of oil per day (bpd) and 12 billion standard cubic feet of gas per day (BSCFD) by 2030. To achieve this target, the Rokan block is one of the keys. The block will be managed by its unit, PT Pertamina Hulu Rokan, after Chevron’ contract end in 2021. The potential for oil in the Rokan block is estimated to be still large, reaching 2 billion barrels.

SKKMigas has reported the oil lifting reached 706,200 bpd until Septemebr, or slightly up from the targets in the 2020 Revised State Budget of 705,000 bpd. In the some month, total oil stocks recorded 4.13 million barrels, consisting of 1.18 million barrels available for transport and 2.95 million barrels of dead stock.

Then, gas lifting during January-September 2020 reached 5,502 million cubic feet per day (MMSCFD), still lower than the target in the 2020 of 5,556 MMSCFD. When compared with the 2019 achievements of 5,912 MMSCFD, the achievements until the third quarter of 2020 decreased by 6.9 percent.

Pertamina has confirmed that it will implement the Enchanced Oil Recovery method in old wells in the Rokan block starting in 2024 to increase the production. According to CEO of PT Pertamina Hulu Energi (Upstream Subholding), Budiman Parhusip, now the block is dominated by old wells, so the system is necessary to increase existing production.

Pertamina is targeting to drill 44 wells in 2021 after transferring management. The number of drilling will further increase to 180 wells in 2022. Head of SKK Migas, Dwi Soetjipto, with managing the Rokan Block, the energy holding is predicted to contribute around 70 percent of national oil production.

The company currently operates 41 oil and gas working areas of a total of 191 oil and gas working areas in Indonesia. Of this amount, the producer oil production contribution as of September was 305,861 BOPD or 43 percent of the total national production of 710,192 BOPD. Gas production is 34 percent or the equivalent of 2,286 MMSCFD of the total national production of 6,732 MMSCFD.

He said that Chevron’ investment in the Rokan block worth US$154 million will be divided into two stages. For the first phase allocated $11 million to drill 11 wells by the end of 2020. With this amount of drilling, production is expected to increase to the level of 500 barrels per day. Then, next drilling need an investment of $143 million until July 2021.

Based on data from SKKMigas, the block production has now reached 207,000 barrels per day, equivalent to 26 percent of national production and to have reserves of 26 billion barrels of oil. Over the years, Rokan block has become one of the largest contributors to ready-to-sell production in Indonesia.

Written by Editorial Staff, Email: theinsiderstories@gmail.com