PT Pertamina (Persero), through PT Pertamina Hulu Rokan (PHR), officially holds the management of the Rokan Block starting August 9 at 00.01 WIB. To increase the oil production of this block, the company plans to invest up to US$ 2 billion until 2025. The increase in production of the Rokan Block is to support the targets of 1 million barrels per day (BPD) and 12 billion standard cubic feet per day/BSCFD by 2030.
"Pertamina has set an investment budget until 2025 of US$ 2 billion," said Pertamina President Director Nicke Widyawati at the Rokan Block Management Transfer Ceremony.
According to Nicke Widyawati, her party sees the Rokan Block still as unconventional oil and gas potential to increase national oil and gas production. Nicke affirmed his commitment to maintaining the Rokan Block's oil production.
Her party will continue the drilling activities that have been started by PT Chevron Pacific Indonesia (CPI) as the previous operator. To prevent this block's oil production from falling, it will drill 161 wells this year and an additional 500 wells next year. It will also continue its advanced oil recovery (EOR) activities.
On that occasion, the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said the management transfer of the Rokan Block was prepared long ago so that oil production from this block would not decrease. In addition, with a mutual agreement during the management transfer period, the production of this oil and gas block in Riau is expected to continue to increase.
Increasing production must be Pertamina's commitment. Moreover, the Rokan Block is one of the largest blocks in Indonesia that has strategic value in achieving the oil production target of 1 million BPD and 12 BSCFD gas by 2030.
“This goal will be realized if PHR invests in drilling massively. Therefore, it is hoped that PHR will propose an aggressive production increase for the remainder of 2021 and the following year," said Arifin.
Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto explained that his party had been preparing to manage this block two years ago. One of the things that his party strives for is to initiate a Head of Agreement (HoA) which guarantees CPI investment at the end of the contract period.
As a result, Chevron managed to drill 103 development wells until the last second of management switching. Thus, the transfer of management runs smoothly and the level of oil production until the contract expires can be maintained.
"This is an important matter for the nation and the state considering that the Rokan Block currently still supports 24 percent of national production and is expected to remain Indonesia's mainstay work area," said Dwi Soetjipto.
Riau Governor Syamsuar also requested that PHR be able to maintain the production of the Rokan Block.
“We welcome PHR who has been given the mandate to manage the Rokan Block. Hopefully, it will not be the same as the Mahakam Block in Kalimantan," said Syamsuar.
Chevron IndoAsia Business Unit Managing Director & Chevron Pacific Indonesia President Director Albert Simanjuntak appreciates the collaboration with SKK Migas and Pertamina that has been carried out during the transition period, so that the transfer of management takes place safely, reliably, and smoothly.
"Hopefully the Rokan Block can continue to give its best contribution to the nation and state," said Albert.
This year, the Rokan Block oil production is targeted at 165 thousand BPD with a realization of 160,646 thousand BPD or 97.4% of the target at the end of June. Next year, SKK Migas projects the oil production of this block to increase to 175,180 thousand BPD. Currently, the Rokan Block is the second-largest oil producer in Indonesia.
Regional Contribution
With the transfer of the management of the Rokan Block to PHR, Syamsuar asked Pertamina to commit to contributing from the block's production to state revenue and regional revenue sharing. Therefore, not only increasing production, PHR must produce oil in the Rokan Block with more efficient production costs.
In addition, Syamsuar charges a 10% participating interest (PI) for Regional Owned Enterprises (BUMD) as stated in the Decree of the Minister of Energy and Mineral Resources.
"The process of transferring the 10% PI must be carried out immediately in the shortest possible time," said Syamsuar.
He also asked that PHR could involve local participation in its oil and gas operations. This means that PHR must provide the widest possible opportunities for BUMD and local companies in the field of construction services and manpower.
In this case, Pertamina is also expected to limit itself to using its subsidiaries in its operational activities. Syamsuar also advised that PHR should synergize with local governments to implement corporate social responsibility (CSR) programs, by empowering local communities and involving local universities.
In addition, he also urged that PHR can help solve the problem of soil contaminated with oil. One of them is by involving the local government and related communities and the authorities in a not so long period of time.
"Besides that, it also helps solve the problem of contaminated land by involving local governments, in the not too distant future," said Syamsuar.
As is known, based on the Decree of the Minister of Energy and Mineral Resources Number 1923 K/10/MEM/2018 dated August 6, 2018, the government has decided Pertamina through its affiliate Pertamina Hulu Rokan (PHR), as the manager of the Rokan Block after August 8, 2021, with participating interest (Participating Interest).
PI) of 100%, including the 10% share belonging to the region. The cooperation contract/PSC of this block was signed by PHR and SKK Migas on May 9, 2019, using a gross split scheme. This contract is effective starting August 9, 2021, with a contract period of 20 years.
Investor Daily, Page-9, Tuesday, Aug 10, 2021
No comments:
Post a Comment