Page 6 - AsianOil Week 27 2021

AsianOil SOUTHEAST ASIA AsianOil

Indonessia overcomes another

Rokan oilfield handover hurdle

PROJECTS & INDONESIA’S state-owned Pertamina is one
COMPANIES step closer to a smooth transition of operations
at the Rokan oilfield after utility Perusahaan
Listrik Negara’s (PLN) acquisition of the power
plant that supplies Rokan.
Pertamina is set to assume control of Rokan
operatorship from US super-major Chevron
on August 9, a process that has been far from
smooth.
In addition to the state developer’s repeated
failures to gain early access to the field, negoti-
ations between Chevron and state-owned PLN
over the North Duri combined heat and power
(CHP) power plant had reportedly been tough
to close out.
Chevron controls North Duri CHP
through affiliate Mandau Cipta Tenaga
Nusantara (MCTN), while operating Rokan
via Chevron Pacific Indonesia (CPI). As such,
Chevron’s power generation assets are sepa-
rate from its upstream interests and required
PLN to purchase them once Chevron lost the Production ambitions
Rokan contract. Commenting on the acquisition, the president
North Duri meets all of the field’s 400 MW of director of Pertamina Hulu Rokan (PHR), Jaf-
power needs while also supplying it with 335,000 fee A Suardin, said PLN’s commitment would
barrels per day (bpd) of steam. strengthen his company’s ability to sustain
It was unsurprising, then, that Pertamina Rokan’s production. PLN and PHR signed a
hailed this week’s news that PLN is now prepar- three-year power and steam supply deal on Feb-
ing to take over North Duri after signing a condi- ruary 1, which will start on August 9.
tional sales and purchase agreement (CSPA) for The field is expected to produce around
a 100% stake in MCTN. 160,000 bpd of oil in 2021, with PHR having
committed to drilling 141 development wells
Power play this year and more than 270 wells next year. Per-
PLN president director Zulkifli Zaini said that tamina wants Rokan to contribute at least 20%
once PLN took control of the power plant it of the country’s national oil production this year.
would continue to supply Rokan with power Suardin said: “Regarding well drilling, we
from the assets for at least the next three years. have also prepared an additional eight drilling
“We will continue to operate this [plant] dur- rigs through new procurement so that in total
ing the next three years of the transition period, there are 16 drilling rigs and 29 rigs for work over
after which we will connect the Rokan block to and well service activities, which are the same as
the Sumatra electricity system,” Zaini said at the the previous contract [held by Chevron].”
signing ceremony. After a rocky few months, it seems the pieces
Zaini added that the local power grid would are finally beginning to fall into place for the
have sufficient capacity to meet the field’s power Rokan handover, with Suardin noting that PHR
needs at the end of the transition period, point- had managed to sign mirror contracts for the
ing to the government’s ongoing “35,000-MW more than 98% of the 290 contracts Chevron
programme”. had finalised.
Indonesian President Joko Widodo first out- Indeed, Pertamina said on July 5 that gas sub-
lined in 2014 his plan to add 35,000 MW of new holding Pertagas had completed more than 70%
generating capacity to the national grid by the of construction work on an export pipeline that
end of his first term in 2019. However, the coun- would be capable of pumping up to 265,000 bpd
try’s slower than expected economic growth has of crude through five municipalities, 14 sub-dis-
undermined this target, forcing PLN to revise tricts and 38 villages.
down its power capacity forecasts. Pertagas senior spokesperson Elok Riani
Zaini said his company would finance the Ariza said: “As of the end of June, the construc-
acquisition from its internal funds, before add- tion progress has reached 71.33%.”
ing: “God willing, we are ready to fund this from Pertamina expects the 367-km pipeline to
PLN’s internal sources of funds.” begin operations in early 2022.™

P6 www. NEWSBASE .com Week 27 09•July 9•2021