Page 8 - AsianOil Week 31 2021
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AsianOil                                    SOUTHEAST ASIA                                           AsianOil


       Indonesia strives for




       smooth Rokan transition




        PROJECTS &       INDONESIA’S upstream regulator SKK Migas
        COMPANIES        held a vendor day for the country’s second-larg-
                         est oilfield last week ahead of its imminent man-
                         agement change over.
                           SKK Migas held the virtual event in associ-
                         ation with outgoing operator Chevron Pacific
                         Indonesia (CPI) and new development lead Per-
                         tamina Hulu Rokan (PHR) on August 1.
                           “Vendor day is quite effective as an effort
                         to ensure contracts and supplies continue to
                         run smoothly when there is a transfer of man-
                         agement from CPI to PHR,” local daily Kat-
                         adata quoted SKK Migas’ acting deputy for
                         procurement control, Rudi Satwiko, as saying
                         on August 3.
                           CPI’s last day in charge of the block is August
                         8, with state-owned PHR set to take over the
                         next day. SKK Migas has been trying to ensure
                         a smooth transition in the block’s management,
                         given the field’s importance in the country’s
                         long-term production goals.
                           The central government has set a 2030 target
                         of producing 1mn barrels per day of oil, up from
                         just 667,000 bpd in the first six months of this  joint utilisation agreement between the two
                         year. Rokan’s production averaged 160,646 bpd  companies on April 21. The agreement allows
                         in the first half of this year, just shy of the govern-  PHR to import and store materials for the drill-
                         ment’s target for this year of 165,000 bpd.  ing programme at Chevron-managed ware-
                           SKK Migas has said it wants Pertamina to  houses in Duri and Dumai.
                         boost the field’s production to 170,000 bpd by   Moreover, SKK Migas has been hosting reg-
                         the end of the year and expects the state major to  ular virtual meetings for the transition team to
                         ramp up drilling efforts in order to hit the target.  discuss issues such as data migration, well drill-
                           “We hope that after August 9, PHR will  ing, IT, contracts and enhanced oil recovery
                         immediately step on the gas to deliver [a]  (EOR) projects.
                         much bigger drilling programme. It is hoped   PHR’s head of business support, Danang
                         that by the end of the year, Rokan’s production  Ruslan Saleh, said this week that the company
                         can be close to 170,000 bpd,” SKK Migas dep-  had been busy mirroring CPI’s existing con-
                         uty of planning Benny Lubiantara told Kata-  tracts with vendors. The executive noted that
                         data on August 3.                    of CPI’s 379 active contracts, 298 had been
                           The regulator’s operations deputy, Julius  successfully transitioned, with another four
                         Wiratno, said during a mid-July presentation  currently being amended.
                         on the country’s upstream performance that   “The amendment to the contract for the pro-
                         Rokan’s production was anticipated to continue  vision of drilling is related to the number of drill-
                         climbing next year as a ramp-up in drilling bore  ing activities that will be added by PHR after the
                         fruit.                               transfer of management so that it requires more
                           “For next year, the estimate will definitely  rigs than the number in the existing contract,”
                         increase. We  are currently  discussing  the  Saleh said.
                         pre-work programme and budget, [we’ll see]   While the transition appears to be progress-
                         175,000-180,000 bpd there and continue to  ing smoothly, uncertainty remains over Pertam-
                         increase,” he said on July 16.       ina’s plans for a potential partner in the block.
                           CPI said at the end of July that it had success-  Pertamina has still not submitted a candidate
                         fully drilled its 100th well on the field this year,  partner to SKK Migas, Lubiantara told local
                         including 11 conversion wells.       financial daily Bisnis on August 3.
                           CPI’s director of operations at Rokan,   “It is possible that after Rokan officially
                         Budianto, said last week that the company had  switches to PHR on August 9, there will be a
                         received additional drilling rigs at the field, bring  delivery of this strategic partner,” the official
                         the number of active rigs at the project to eight.  said, adding that up until this point the transition
                           SKK Migas has been working closely with  team’s focus had been limited to ensuring that
                         CPI and PHR in recent months, overseeing a  the handover proceeded smoothly.™



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