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Thursday, April 8, 2021

Pertamina Hulu Mahakam-Apexindo Signed US $ 68 Million Contract

 


PT Pertamina Hulu Mahakam (PHM) as the operator in the Mahakam Working Area (WA), with the support of SKK Migas and PT Pertamina Hulu Indonesia (PHI), announced the award of the Drilling Submersible Swamp Barge Services (Swamp Rig) contract to PT Apexindo Pratama Duta, Tbk, valued at the US $ 68 million.

Chalid Said Salim

    The signing of the swamp rig procurement contract was carried out online in Jakarta, on Thursday (4/2) by the Managing Director of PHI as the Proxy of the Managing Director of PHM Chalid Said Salim and the President Director of PT Apexindo Pratama Duta Tbk Zainal Abidinsyah Siregar. Also watching SKK Migas' Head of Goods and Services Procurement Management Division Erwin Suryadi, PHM General Manager Agus Amperianto, along with PHI and PHM management ranks.

Agus Amperianto

PHM General Manager, Agus Amperianto explained, Rig Yani will be brought to Mahakam Working Area to replace Rig Raisis in the second quarter of 2021 and support drilling operations in the Tambora, Tunu, and Handil fields. Agus hopes that Apexindo will take an active role in proposing efficiency programs.

"The development of various innovations for the optimization of operations will greatly support the Locomotive-8 program, for the continued production and development of the Mahakam Working Area," he said.

the Mahakam Work Area 

Through the Locomotive-8 program (Low Operation Cost of Mahakam to Achieve Effectiveness and Efficiencies - 8), PHM launched an integrated effort to optimize costs in all operating activities based on innovation and synergy, the goal is to maintain economics and sustainability in the Mahakam Working Area fields. who is already in the natural decline phase?

In his speech, Chalid Said Salim said that the signing of this contract is a form of Pertamina's commitment to maintaining production levels in the Mahakam Working Area.

"This signing is a manifestation of Pertamina's efforts to maintain national energy security, considering that this contract is an important part of oil and gas production activities at Mahakam Work Area," he said.

The contract value reaches US $ 68 million, has a duration of 1.5 years (with an option to extend 1 + 1 year), and has a commitment to the Domestic Content Level (TKDN) of 60.01%. 

    

Blogger Agus Purnomo in SKK Migas

    Head of the SKK Migas Goods and Services Procurement Management Division, Erwin Suryadi, said that SKK Migas welcomed the signing of this rig procurement contract.

"The signing of this contract shows PHM's determination to continue to maintain production levels in the Mahakam Working Area, this effort is also part of the efforts of SKK Migas and Cooperation Contract Contractors (KKKS) to achieve the production target of 1 million barrels of oil per day (BOPD) and gas. billion standard cubic feet per day (BSCFD) by 2030, "he said.

"To keep 2021 production from decreasing, SKK Migas and KKKS will increase the number of development well drilling activities by 616 wells, or an increase.

144 percent compared to 2020's realization of 252 wells. Mahakam Working Area is one of the backbones of the national upstream oil and gas production in 2021 and towards the 2030 target, "said Erwin.

"SKK Migas encourages that in implementing this contract PHM uses domestic labor and raw materials so that local content can exceed the target set.

It is hoped that this contract will have multiple effects on service providers and national workers, including the empowerment and fostering of local SMEs around the area of ​​operation, "said Erwin.

As is known, to restrain the rate of decline in production in the Mahakam Working Area, which is already in a natural decline phase, throughout 2021 PHM will drill 73 development wells and 2 exploration wells and work on 4,150 wells intervention/service jobs. 

    PHM targets production in 2021, as follows: gas 485 mmscfd (wellhead) and liquid (oil and condensate) 22 KBOD. In 2020 PHM produces gas as much as 605.76 mmscfd (wellhead) or 3% higher than the 2020 WP&B target, which is 590.35 mmscfd, and liquid as much as 29.51 KBOD or 4% higher than the WP&B 2020 target of 28.43 KBPD

Investor Daily, Page-10, Friday, Feb 5, 2021

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