The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that PT Chevron Pacific Indonesia (CPI) could immediately begin drilling in the Rokan Block to maintain oil and gas production during the management transition period.
This is after the agreement to accelerate investment in the Rokan Block was agreed.
Head of SKK Migas Dwi Soetjipto said, to optimize the production level of the Rokan Block during the transition period, the government needs to oversee the continuation of investment before the block production sharing contract (PSC) ends. For this reason, heads of agreement (HoA) and amendments to the Rokan Block PSC are needed as the basis.
"This contains the scope of drilling activities and returns on investment costs at the end of the PSC period, as well as post-mining fund reserves (Abandonment and Site Restoration / ASR) which have not been clearly regulated in the generation contract, ”he said.
According to him, this agreement benefits both parties. This is because, with a clear return on investment, it is hoped that the Rokan Block oil production will not decline during the transition period. In the short term, this strategy is also to maintain national oil and gas production from falling in the next year.
"This agreement allows Chevron to drill in the Rokan Block before the end of the contract period in August 2021," Dwi added.
Following this agreement, SKK Migas and Chevron will finalize implementation details in the coming weeks. This is to support the commencement of drilling activities. Previously, SKK Migas had stated that Chevron was committed to drilling 104 wells in the Rokan Block, namely 11 wells this year and 104 wells in 2021.
The total additional oil production produced is estimated at 5,000 bpd. In detail, Chevron will operate 2 rigs to drill 11 wells in the Rokan Block in November-December this year. Furthermore, in January next year, Chevron will run 5 rigs to drill 96 wells.
The estimated cost required for drilling is the US $ 11 million in 2020 and US $ 115 million next year. Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif reminded Chevron and SKK Migas to realize the terms agreed upon in the HoA.
This is because the implementation of this provision will have an impact on efforts to achieve the national oil and gas production target next year according to the 2021 APBN macro agreement.
"We will continue to monitor its implementation periodically to ensure the commitment of all parties goes according to the agreement, especially the certainty of the implementation of drilling activities which will start in November 2020," said Arifin.
Meanwhile, President Director of PT CPI Albert Simanjuntak said, the Rokan Block is the foundation of the energy industry and has contributed significantly to the progress of the country for decades.
"This agreement is the result of a strong and collaborative partnership with the Government of Indonesia and ensures that this strategic block will continue to play an important role in Indonesia's energy sovereignty for years to come," said Albert.
This year, the Rokan Block is targeted to produce 170,763 bpd of oil. Until the end of last June, the realization of this block's oil production was recorded to have exceeded the target, reaching 179,682 bpd. However, until the end of the year, the projected production of the Rokan Block is only 170 thousand bpd. The Rokan Block is the second-largest oil producer in Indonesia.
Investor Daily, Page-10, Tuesday, Sept 29, 2020
No comments:
Post a Comment