Page 7 - AsianOil Week 08 2021

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2019 with the stated aim of beginning devel- There are also lingering uncertainties sur-
opment drilling as soon as possible in order rounding Rokan’s power supply, with state-
to maintain production levels. When nothing owned power utility PLN still trying to acquire
came of this, Pertamina revisited the idea in Chevron’s North Duri combined heat and power
January 2020, this time noting that it hoped (CHP) power plant. Chevron controls North
to start drilling by the third quarter. Again, no Duri CHP through affiliate Mandau Cipta
agreement was reached. Tenaga Nusantara (MCTN), while operating
Pertamina has been trying to gain access to Rokan via Chevron Pacific Indonesia (CPI). As
the block owing to Chevron’s decision to halt such, Chevron’s power generation assets are sep-
spending on new drilling following the loss of arate from its upstream interests.
its licence renewal bid. Rokan’s production has While PLN has a plan in place to connect
dropped from more 210,000 bpd to just 176,298 Rokan to Sumatra’s power grid, it will take at
bpd of oil on average in the third quarter of 2020, least three years to achieve, Soetjipto said. The
according to SKK Migas data. This figure is pro- official revealed that the government had hoped
jected to fall 165,000 bpd in 2021. Chevron would grant North Duri CHP to the
Chevron did sign a deal with SKK Migas in state, noting that the facility had broken even
September 2020 that will see it invest around after more than two decades of operation. The
$150mn to drill 112-118 new wells at Rokan official added: “Thus it makes sense that Chev-
before its licence expires, with the goal being to ron grants it [North Duri CHP] to the state.”
raise output by around 5,000 bpd. Local media Chevron does not appear see it that way, how-
outlet Bisnis reported this week, however, that ever, given MCTN’s decision to hold an open
Chevron had only drilled 12 of the required tender for the plant, forcing PLN to compete for
wells. the asset.
The breakdown in talks between the two Further complicating matters is the fact that
companies extends further than field access, Pertamina is still looking for a partner to help
however, with Chevron reportedly reluctant to minimise its financial exposure to the block’s
share proprietary information with Pertamina. hefty drilling target of 1,246 wells by 2025.
“The selection of strategic partners for the
Further trials Rokan block is currently in the review and
Soetjipto told local weekly magazine Tempo preparation stage,” Pertamina spokesperson
on February 8 that Pertamina was struggling to Agus Suprijanto told Indonesian language news
secure the chemical formula Chevron had devel- outlet Kontan on February 22. Suprijanto, how-
oped specifically for use in enhance oil recovery ever, did not provide any details on the compa-
(EOR) operations at Rokan. nies that had submitted offers.
The official noted that the super-major had Pertamina’s odds of pulling off a successful
only shared its EOR chemical formula it used transition at Rokan appear slim at this point,
in operations at the Minas field. These included given the two years of difficulty it has encoun-
surfactant, co-surfactant, ice soda, polymers and tered. The dangers of consolidating the coun-
ethylene glycol monobutyl ether, with Chevron try’s oil and gas production under one banner
Oronite handling production of surfactant and are becoming more apparent as the deadline for
co-surfactant. Rokan’s handover nears.™

Week 08 25•February•2021 www. NEWSBASE .com P7