The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that the Rokan Block oil production could be increased to 175-180 thousand barrels per day (BPD) in 2022 after the management shifted to PT Pertamina Hulu Rokan (PHR) in August this. The increase in production was obtained from Well drilling, and the implementation of advanced oil recovery (EOR).
SKK Migas Deputy for Operations Julius Wiratno is optimistic that oil production in the Rokan Block can rise again despite the transfer of management. The reason is, even now, there are indications of an increase in production by doing well drilling during the operatorship transition period. In the ongoing discussion of the 2022 work plan and budget (WP&B), there are also indications that oil production will increase next year.
"The estimate may be that it will return to 175-180 thousand BPD, with massive development, of course, it will directly contribute to production and lifting," he said.
The implementation of Well drilling is one of the nine issues monitored by SKK Migas in the transfer of management of the Rokan Block. Until now, the realization of drilling development wells in the Rokan Block has reached 83 wells from the target of 180 wells this year.
Furthermore, the realization of work over (workover) wells as many as 40 wells from a target of 39 wells, and well services (well services) 5,135 activities from a target of 6,819 activities.
In the following years, Julius also believes that the Rokan Block's oil production will continue to increase. The reason is that Pertamina will apply surfactant EOR technology in the block. The Plan of Development/POD for the implementation of EOR is targeted to be approved this year.
"We are working hard for the approval of this EOR POD so that it can be implemented immediately with suitable chemicals and can support it towards full scale as soon as possible," he said.
He hopes that the implementation of EOR in Minas Field, Rokan Block can be successful. If successful, this step is expected to contribute to the production of the Rokan Block in 2023-2024.
"Perhaps this [Rokan Block] will be an example of an oil and gas block taken by Pertamina whose production does not decrease, but instead increases," said Julius.
EOR implementation is also one of nine issues monitored by SKK Migas. So far, the data transfer and the conversional chemical EOR model have been completed. Meanwhile, the procurement of surfactant (surfactant chemical) to be used in EOR activities is still in process.
At the time of signing the Rokan Block contract, the implementation of EOR activities was also one of Pertamina's commitments. This is as stated in the Decree of the Minister of Energy and Mineral Resources 1923K/10/MEM/2018. Some of these activities are the US$ 4 million EOR study, US$ 247 million stage-1 CEOR 7 pattern, and stage-1 steam flood Kulin or Rantau Bais US$ 88.6 million.
Going Smoothly
Regarding the transfer of management of the Rokan Block in August this year, the Head of SKK Migas Dwi is optimistic that it will run smoothly.
“The main issue, namely the migration of technical and operational data, has made 94% progress. So we are sure that it can be completed in August,” said Dwi.
So far, the data catalog and verification have been completed, but they are still waiting for a review and BAP from the Data and Information Center (Pusdatin) of the Ministry of Energy and Mineral Resources. Next, he said the development of the Rokan Block contract management had reached 97%.
A total of 282 of the 290 existing contracts have completed the mirroring process. The procurement of materials for 192 has been completed, as well as the procurement of 4 rigs in progress and 3 rigs in the process of the farm in. The progress of electricity, steam, and gas supply has also reached 80%.
“Where PLN has made an agreement with PHR for the supply of electricity and steam. And PLN already has a sales purchase agreement (SPA) with MCTN," said Dwi.
MCTN or PT Mandau Cipta Tenaga Nusantara is the owner of the power plant that supplies electricity to the Rokan Block. Regarding employment, 99% of workers have received offers from PHR, and the addition of 125 new positions in the PHR Employment Plan (RPTK). Next, the transfer of information technology has reached 83% where a total of 232 applications are needed.
In detail, 31 CPI applications were replaced by Pertamina applications, then of the 129 CPI applications that are still in use, 88 applications have been approved and 41 applications are under discussion, and 72 commercial applications are provided by PHR.
Then, the licensing and operating procedures have reached 98%. Environmental Impact Analysis (EIA/Amdal) has been completed for two locations, and another location is still in process. In addition, 7,611 standard operating procedures (SOPs) have been submitted from CPI to PHR.
"Environmental issues are 100% complete, where the environmental audit and program have been prepared and are waiting for a clean declaration from the KLHK (Ministry of Environment and Forestry)," said Dwi.
In principle, as many as 157 Environmental Function Recovery Plans (RPFLH) have been completed. The Rokan Block is one of the largest oil and gas blocks in Indonesia. However, the production of this oil and gas block continues to decline. Referring to SKK Migas data, in 2011, the Rokan Block still produced around 356.98 thousand BPD of oil or contributed 39.56% of the total national oil production at that time of 902.35 BPD.
However, last year, oil lifting in this block was only around 174,424 BPD or 24.62% of the total national oil lifting of 708,488 BPD. As of June, the realization of the Rokan Block production was recorded at 160,646 BPD or 97.4% compared to the lifting target of the State Budget (APBN) is 165 thousand BPD.
Investor Daily, Page-10, Thursday, July 22, 2021
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