Cepu block returns to normal production at 220 thousand BPD

 

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that the Cepu Block has returned to producing around 220 thousand barrels of oil per day (BPD) after having stopped operations (planned shutdown) for routine maintenance.

the Cepu Block

Acting Head of Program and Communication Division of SKK Migas, Susana Kurniasih, said that the cessation of the operation took place faster than planned for 9 days to 7 days. With the acceleration of the planned shutdown since September 18th, Banyu Urip Field, Cepu Block, has started producing oil again.

Banyu Urip Field, Cepu Block.

"Within 2 days of schedule, there will be potential to increase the production of 450 thousand barrels of oil," said Susana.

Susana Kurniasih

Susana explained this additional production is very important for SKK Migas in an effort to meet the lifting target of oil and gas (oil and gas) in the Revised State Budget (APBN-P) 2020.

Blogger Agus Purnomo in SKK Migas

"In addition, this acceleration will also have an impact on saving operating costs so that we can optimize state revenues," said Susana.

Susana added that this success was due to the excellence shutdown handling carried out by the SKK Migas team with Exxon Mobil Cepu Limited (EMCL) is the Cepu Block operator. Even during the Covid-19 pandemic which resulted in work restrictions, the cessation of operations could be accelerated with digital optimization.

Vice President Public and Government Affairs Exxon Mobil Indonesia Azi N Alam said, the planned shutdown activities have been planned, scheduled, and approved in the work plan and budget (Work Program & Budget / WP & B). Thus, this activity has no effect on achieving the Cepu Block production target. 

    In addition to routine maintenance, activities carried out during the planned shutdown also include gas handling capacity upgrades and support the process of working on the tie-ins for the Jambaran-Tiung Biru Project.

the Jambaran-Tiung Biru Project

"Focusing on the implementation of safe and good work activities has enabled the Cepu Block to return to production of more than 220 thousand," said Azi N Alam.

Currently, his party is focused on maintaining operational stability. After that, his party will gradually increase oil production from the Cepu Block while ensuring the safety and reliability of operations. 

    Referring to SKK Migas data, the Cepu Block is targeted to produce 220 thousand bpd of oil according to the 2020 State Budget. As of last June, the realization of this block's production has reached 220,279 thousand BPD or the largest in Indonesia.

Furthermore, until August 12, production will again increase to 228 thousand bpd. On the other hand, SKK Migas is also working on accelerating several work programs from oil and gas companies operating in Indonesia. 

    He hopes that the implementation of this work program can be the initial capital to realize the oil production target next year which is set the same as this year, which is 705 thousand bpd.

"Anything that can be done in 2020, such as maintenance, procurement, licensing, and other things, we ask that it be implemented immediately. This is a joint commitment, "said Susana.

Investor Daily, Page-10, Tuesday, Sept 29, 2020

Negotiable Gas Price Sakakemang Difficult

 

The Special Task Force for Upstream Oil and Gas Implementation (SKK Migas) is still in talks with Repsol regarding the fixing of gas prices from the Sakakemang Block development project.

the Sakakemang Block

Deputy of Finance and Monetization of SKK Migas, Arief Setiawan Handoko, said that discussions related to gas prices have been carried out many times. 

    The calculation of the price according to the economy is carried out between the Repsol Cooperation Contract Contractor (KKKS) and the SKK Migas Deputy Planning team. 

    Arief is optimistic that an agreement can be reached in the near future or before the end of 2020 along with the Phase 1 development plan or plan of development (PoD) of the Sakakemang Block.

"The Sakakemang economic gas price will soon be met, in the near future," said Arief.

Repsol

The difficulty of this negotiation is due to the government's decision to set a maximum industrial gas price of US $ 6 per MMBtu. So, Repsol as the Sakakemang Block operator has an objection to the gas price. This Spanish company wants a price above the US $ 7 per MMBtu which is considered still in accordance with the economic value of the project. 

    Unfortunately, Arief is reluctant to reveal how the progress and the amount of gas price discussed so far. What is clear, he hopes that Sakakemang gas price can be economical and in line with the gas price policy of US $ 6 per MMBtu which has been decided by the government.

"If we are from the commercial sector, we must look at the gas price policy of US $ 6 per MMBtu, so that the selling price is easier," said Arief.

As is known, industrial gas pricing is regulated in Presidential Regulation No. 4/2016 and Minister of Energy and Mineral Resources Regulation No. 8/2020. According to Arief, the regulation is correct and can encourage KKKS to optimize its production costs. Repsol Stakeholder Relations Manager, Amir Faisal Jindan, said that currently, his party is still conducting the POD 1 approval process with the government.

"It's still a process," said Amir.

Kontan, Page-10, Saturday, Sept 26, 2020

Pertamina Focuses on Increasing Production

 

PT Pertamina (Persero) through its subsidiary continues to work on completing the work plan that has been launched, in order to increase the company's contribution to the achievement of national oil production.

In 2019, Pertamina's upstream contribution is around 41% of total national production, while this year it is targeted to increase to 49%. Furthermore, in 2021 Pertamina's contribution is expected to reach 60%, especially with the company's entry into the Rokan Block.

the Rokan Block

President Director of PT Pertamina EP Eko Agus Sardjono said that in facing the remainder of the 2020 period, the Pertamina subsidiary will focus on optimizing domestic gas absorption which is expected to be able to boost gas and condensate production.

"Apart from that, Pertamina EP also focuses on completing work plans for drilling exploration wells, seismic surveys, drilling development wells, workover, and well service so that the performance achievement at the end of the year can be achieved optimally," he said.

As of August 2020, Pertamina EP has realized 58 wells and 5 wells are underway, while the revised 2020 Corporate Budget Work Plan (RKAP) target is 79 wells. Meanwhile, 107 rework activities have been completed and 7 are in progress from the revised RKAP 2020 target of 192 activities. Realization of well maintenance and well intervention 2,103 activities have been completed from the revised 2020 RKAP target of 2,547 activities.

In addition, in August 2020 Pertamina EP has increased production through 4 development wells located in the work area of ​​Pertamina EP Asset 1, Asset 2, Asset 3, and Asset 5. With the additional production in August, overall Pertamina EP development drilling activities The 2020 Work Plan has succeeded in contributing 7,809 barrels of oil per day (bopd) and 5.6 MMscfd of gas to Pertamina EP's overall oil and gas production.

In accordance with the 2020 revised RKAP, until July 2020 Pertamina EP oil production reached 80.3 MBOPD or 99.6% of the target, and gas production was 866 MMscfd or 95% of the target. 

    Chief Executive Officer of PT Pertamina Hulu Energi (Subholdingupstream) Budiman Parhusip previously explained that the realization of Pertamina EP, which was still below the target, was caused by obstacles that arose during the Covid-19 pandemic and also low world oil prices. On the other hand, Pertamina will also disburse the US $ 80 million for drilling wells in the Rokan Block during the transition period which will start in August 2021.

President Director of Pertamina Hulu Rokan, RP Yudantoro, explained that during the transition period, the company will begin drilling as many as 44 wells in the Rokan Block. He said Pertamina Hulu Rokan (PHR) together with the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) had determined the coordinates of the entire well being drilled.

Blogger Agus Purnomo in SKK Migas

Currently, his party is preparing a rig for the drilling process. Pertamina Hulu Rokan needs 5 units - 6 units of rigs for drilling in 2021. Later, the rig units will be provided by PT Pertamina Drilling Service Indonesia (PDSI).

"We drilled the US $ 1.5 million for each well — only US $ 2 million," he said.

PT Chevron Pacific Indonesia (CPI)

Next year, it is targeted that as many as 184 wells will be drilled to smooth the transition of the management of the Rokan Block from PT Chevron Pacific Indonesia (CPI) to Pertamina. Yudantoro added that his party continues to strive to accelerate the transfer of exploration and exploitation data from the main fields so that they can immediately prepare for the drilling of 44 wells in the Rokan Block. Pertamina targets to carry out the drilling immediately after the transition from Chevron to PHR on August 9, 2021.

"PHR will ensure that drilling preparations from August to December 2021 can run smoothly, therefore intensive communication will be carried out with CPI so that the data transfer process, information procedures [SOP], and land preparation can run quickly, without significant obstacles," he explained.

In addition, Yudantoro continued, currently, the process is still being carried out, among others, the construction process of replacing a 364 km long trunk line that carries crude oil from the Rokan field to a storage tank in Dumai, which can then be used as a supply for product processing at the Pertamina Dumai Refinery.

ROKAN BLOCK TRANSITIONS

PHR, he said, is also preparing for the transition of Chevron workers who will later be empowered at PHR and at Pertamina in accordance with applicable regulations, such as workers in other management transfer blocks that Pertamina has previously handled.

"With the support of all stakeholders, we all hope that the transition in the Rokan Block can go well so that it can maintain oil and gas production to encourage national energy security and independence," he added.

The performance of a number of Pertamina's subsidiaries that were operators in several oil and gas blocks previously received the spotlight because they did not reach the set target. Based on SKK Migas data, as of June 2020, there were four Pertamina subsidiaries that did not reach the ready-made or lifting oil production target. In fact, so far, it is included in the top 15 cooperation contract companies (KKKS) as contributors to the national oil and gas lifting.

SKK Migas also asked Pertamina EP to optimize this year's work plan so that the production target is ready to sell or lifting can be achieved. Acting Head of Program and Communication Division of SKK Migas Susana Kurniasih said that the optimization of Pertamina EP's work plan must be realized because the contribution of this optimization will greatly affect the achievement of the lifting target.

"We hope that Pertamina EP can realize all the programs planned in the remaining 2020," he said.

Trisakti University teaching staff, Pri Agung Rakhmanto, assessed that Pertamina EP's performance results have an important influence and role in the national lifting performance. This is because Pertamina EP's overall production is around 82,000 bpd. He considered that the weakening of oil prices and the Covid-19 pandemic affected the capability investment of a number of oil and gas companies and must implement efficiency so that currently optimization is very necessary.

"It is quite important, Pertamina EP's overall production is around 10% -12% of the total national lifting," he explained.

Bisnis Indonesia, Page-21, Wednesday, Sept 23, 2020

SKK Migas Strengthens Coordination

 

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) together with PT Chevron Pacific Indonesia (CPI) continues to coordinate to ensure the transition to the Rokan Block takes place according to plan.

Blogger Agus Purnomo in SKK Migas

"SKK Migas and CPI are currently coordinating to carry out field preparations. If the head of agreement is signed, activities can go ahead, ”said Susana Kurniasih, Plt. Head of SKK Migas Program and Communication Division.

PT Chevron Pacific Indonesia (CPI)

Drilling in the Rokan Block by Chevron is confirmed to be still on schedule, namely November 2020. He said Chevron will use two rigs to drill the Rokan Block. Chevron is said to be able to increase the production of the Rokan Block working area to 5,000 barrels per day (bopd) from drilling 11 wells this year.

the Rokan working area (WK)

As of July 2020, oil production in the Rokan working area (WK) had fallen 170,000 bopd. For this reason, the process of transferring management of the Rokan Block must be smooth without causing the level of decline in production to continue to grow.

Sonita Purnomo

"As with any transition, there are a number of things that are being discussed so far, including options to support the state in optimizing production from this strategic asset," said Chevron's Corporate Communication Sonita Purnomo.

Dwi Soetjipto

Previously, the Head of SKK Migas Dwi Soetjipto explained that he was taking care of an environmental audit to transfer the management of the Rokan Block with Chevron. 

    Referring to the production sharing contract for the Rokan Block CA, Chevron does not have the obligation to reserve funds after mining. However, Chevron has committed to providing funds for the Abandonment Site Restoration or contaminated land.

In order for the transition process to run smoothly, PT Pertamina (Persero) was also asked to prepare for post-transition needs in the Rokan Block. Currently, Pertamina is also known to be preparing to procure a rig for drilling the Rokan Block which will be carried out in 2021. 

Fajriyah Usman

    VP Corporate Communication of Pertamina Fajriyah Usman explained, Pertamina has prepared rig procurement considering that Chevron has no more rig contracts since 2018 in the Rokan Block.

"For the Pertamina Hulu Rokan 2021 drilling, the preparation of drilling rigs is currently being processed through new procurement and Pertamina Group synergies," said Fajriyah Usman.

Bisnis Indonesia, Page-4, Monday, Sept 21, 2020

Pertamina Drilled 180 wells in Rokan

PT Pertamina Hulu Rokan (PHR) targets the drilling of new wells in the Rokan Block to reach 180 wells by 2022 after the transfer of management starts in August 2021.

the Rokan Block by Chevron

The number of wells drilling has increased from the planned period of August 2021 to December 2021, which was only 44 wells.

"For 2022, we will drill 180 new wells," said Pertamina Hulu Director Rokan R.P. Yudantoro.

He did not want to reveal the estimated rig requirements for drilling the 180 new wells. However, it is certain that drilling 44 wells in 2021 will be the responsibility of PT Chevron Pacific Indonesia (CPI), the main manager of the Rokan Block.

PT Chevron Pacific Indonesia (CPI)

Chevron has determined the location of 44 wells and through discussions with the Special Task Force for Upstream Oil and Gas Implementation (SKK Migas). Chevron will begin the preparation for the drilling location for 44 wells in early 2021.

"In order not to be constrained by land acquisition and construction problems (which will be done by Chevron), Pertamina Hulu Rokan chose a drill point that could be done from the existing well pad, so the only work needed was repairing the location," he said.

Pertamina is currently focused on completing a number of stages including IT systems and petrotechnical data transfer applications, licensing, electricity-steam and gas supplies, goods and services contracts, and preparation for drilling in 2021. For the provision of goods and services contracts, previously Pertamina started meeting 150 potential partners. 

    Work and conduct socialization related to procurement processes and procedures. The potential partners are Chevron's partners who have handled a number of goods and services needs in the Rokan Work Area.

Regarding the continuation of the head of agreement (HoA) transition which took effect in September 2020, the Deputy for the Coordination of Maritime Sovereignty and Energy, the Coordinating Ministry for Maritime Affairs and Investment, Purbaya Yudhi Sadewa said, Currently the finalization stage at the Ministry of Energy and Mineral Resources is especially for the certainty of the implementation of the HoA. Even so, he considered it difficult to ensure that the HoA could be signed this week. However, Chevron's drilling plan for November has not changed.

Kontan, Page-12, Friday, Sept 18, 2020

Pertamina-Chevron Continue to Discuss the Transition of the Rokan Block

 

PT Pertamina Hulu Rokan (PHR), a business unit of PT Pertamina (Persero) which will operate the Rokan Block working area, continues to communicate with PT Chevron Pacific Indonesia (CPI) ahead of the takeover of operatorship on August 9, 2021.

the Rokan Block by Chevron

During this transition period, PHR will make efforts so that the Rokan Block operation can run well, one of which is related to the procurement of goods and services.

Director of PHR RP Yudantoro said, to date, PHR is mapping the existing contracts in the CPI and the PHR work plan after the transition. PHR is also currently determining the needs for goods and services of all user function entities.

In order to speed up the procurement process, PHR has also started meeting with potential work partners and carried out socialization related to the procurement process and procedures at PHR. 

    This socialization was carried out online on Thursday (3/9) to around 150 prospective partners who were CPI's working partners. have handled a number of goods and services needs in the Rokan Block.

"We realize that PHR cannot work alone to optimize and develop the Rokan Block working area. For this reason, it is necessary to involve partners in the procurement of goods and services we need for the operational needs and interests of Working Area the Rokan block, "said Yudantoro.

Regarding data on work partners and contracts, Yudantoro said that his party was assisted by the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas). 

Blogger Agus Purnomo in SKK Migas

    PHR continues to communicate intensively with CPI to accelerate the transition of documents or data from CPI's working partner contracts during the 2017-2021 period, including those that have expired the contract period but are still required for the operation of the Rokan Block working area. 

    This contract document is necessary considering that the plan for the procurement of goods and services for routine operations will be based on the mapping of existing contracts in the current Rokan Block working area. While That is, non-routine operations are carried out based on the work plan and production targets determined by the PHR.

"PHR will immediately prepare a contract for WK Rokan based on information from the existing operator, thus enabling PHR to prepare an adequate scope of work and technical specifications," said Yudantoro.

The procurement of goods and services at PHR, said Yudantoro, will be carried out according to company needs by carrying out efficiency in all fields. Coordination with work partners who will become PHR business partners can be done through business to the business mechanism. The Rokan block is the largest oil block in Indonesia.

This 6,220-kilometer oil and gas block has 96 fields with three fields having good oil potential, namely Duri, Minas, and Bekasap. Moment Currently, the operational management of the Block Rokan is CPI.

Previously, PT Pertamina Hulu Energi (PHE), Pertamina's upstream sub-holding opened opportunities for local entrepreneurs and contractors in the Riau region to become part of the Rokan Block. Pertamina promised to involve local entrepreneurs to be able to participate in the development of the Rokan Block. 

    PHE CEO Budiman Parhusip explained that the involvement of local entrepreneurs, both from the service and equipment sectors, is expected to help improve Riau's economy. He said, not only local companies Regional-owned enterprises (BUMD) also receive a portion with participating interest (PI) of 10 percent.

Republika, Page-4, Saturday, Sept 12, 2020

Pertamina Begins Transition of Rokan Block

 

PT Pertamina through Pertamina Hulu Rokan (PHR) ensures that a number of transition efforts are still being carried out ahead of the transfer of management of the Rokan Block in August 2021.

The Rokan Block By Chevron

One of the things being done at this time is the transition of contract documents related to the procurement of goods and services. PHR conducted outreach with 150 prospective partners who were partners of PT Chevron Pacific Indonesia (CPI) in managing the Rokan Block.

Director of PT PHR, Yudantoro, explained, to speed up the process of procuring goods and services, PHR has met with 150 prospective partners and conducted socialization related to procurement processes and procedures at PHR. Yudantoro said that his party could not work alone to optimize and develop the Rokan Block.

"This requires the involvement of partners in the procurement of goods and services that we need for the needs and operational interests of the Rokan Block," said Yudantoro.

Blogger Agus Purnomo in SKK Migas

Currently, together with the Special Task Force for Upstream Oil and Gas Implementation (SKK Migas), PHR has conducted intensive communication with CPI in order to accelerate the transition of contract documents. The documents in question, namely data from work partner contracts owned by CPI for the period 2017 to 2021, include whose contract period has expired but is still needed for the Rokan Block operation.

This contract document is necessary, considering that the plan for the procurement of goods and services for routine operations will be based on the mapping of existing contracts in the current Rokan block Work Area. Meanwhile, non-routine operations are carried out based on work plans and production targets determined by PHR.

"PHR will immediately prepare a contract for the Rokan block working area based on information from the existing operator, thus enabling PHR to prepare adequate work scope and technical specifications," said Yudantoro. The procurement of goods and services at PHR will be carried out according to company needs.

Kontan, Page-10, Saturday, Sept 12, 2020

Pertamina Optimizes Transition Period for Rokan Block

 

PT Pertamina Hulu Rokan (PHR) continues to prepare to take over the operations of the Rokan Block working area (WK) which will start on August 9, 2021. During this transitional period, PHR made maximum efforts so that the operations of the Rokan WK would continue to run well, one of which was related to the procurement of goods and services.

Director of PHR RP Yudantoro said that until now PHR is mapping the existing contracts at PT Chevron Pacific Indonesia (CPI) and the post-transition PHR work plan.

The Rokan Block By Chevron

PHR is also in the middle of determining the needs for goods and services of all user function entities. To speed up the procurement process later, PHR has also started meeting with potential partners and socializing the procurement process and procedures at PHR. 

    This socialization was carried out online on September 3 yesterday to around 150 prospective partners who are CPI partners who have handled a number of goods and services needs at the Working Area of the Rokan Block.

"We realize that PHR cannot work alone to optimize and develop the Working Area of the Rokan Block. This requires the involvement of partners in the procurement of goods and services that we need for the operational needs and interests of the Working Area of the Rokan Block, "said Yudantoro.

With regard to data on work partners and contracts, Yudantoro said, assisted by SKK Migas, PHR continued to communicate intensively with CPI to accelerate the transition of documents or data from work partner contracts owned by CPI during the 2017-2021 period, including those whose contracts had expired but still needed for the operation of Working Area of the Rokan Block. 

    This contract document is necessary considering that the plan for the procurement of goods and services for routine operations will be based on the mapping of existing contracts in the current Working Area of the Rokan Block. Meanwhile, non-routine operations are carried out based on work plans and production targets determined by PHR.

"PHR will immediately prepare a contract for Working Area or the Rokan Block based on information from the existing operator, thus enabling PHR to prepare an adequate scope of work and technical specifications," he said.

The procurement of goods and services at PHR, added Yudantoro, will be carried out according to company needs by making efficiency in all fields. Coordination with work partners who will become PHR business partners can be done through the Business to the Business mechanism.

"PHR will synergize with Pertamina Group and BUMN in limited areas, for example, the procurement of helicopters with Pelita Air, the procurement of some onshore rigs with PDSI. So, we will also involve other local and national companies in operating activities at Working Area of the Rokan Block, "he said.

Investor Daily, Page-9, Saturday, Sept 12, 2020

Tangguh Project Increases Number of Workers

 

BP Berau Ltd as the operator of the Tangguh Field in West Papua will begin to increase the rate of construction of Tangguh Train 3 by increasing the number of workers in the field (the person onboard / PoB) from 6,300 PoB to 7,700 PoB. 

Tangguh Field West Papua

    This step is taken after the operator can keep Tangguh Field Covid-19 free and have emergency response readiness to maintain the progress of the project.

Blogger Agus Purnomo in SKK Migas

“SKK Migas received a report from BP Berau Ltd regarding the development of the Tangguh train-3 expansion project schedule. The success of the operator in keeping the project Covid-19 free is encouraging news. 

    This shows that the upstream oil and gas project can still be realized by implementing the Covid-19 health protocol and applying K3 standards at a high level, "said SKK Migas Head of Program and Communication Division Susana Kurniasih, Head of the Task Force.

Susana Kurniasih

The increase in the number of workers in the field was carried out after going through a series of evaluations. Due to this success, BP Berau Ltd as the operator plans to gradually increase the number of Tangguh train 3 project workers.

"We hope that this step is one of the efforts to accelerate the completion of the project, which was slowed down due to the Covid-19 pandemic," said Susana.

Previously, when the Covid-19 pandemic began to enter a number of regions in Indonesia at the end of February 2020, the upstream oil and gas industry significantly reduced activities in the field, as an effort to prevent the spread of the Covid-19 pandemic. 

    At that time the Tangguh project in West Papua had to reduce workers in the field, from 13,000 Person on Board (BOP) to around 6,300 BOP. The reduction of up to 50% of these workers is a medical recommendation so that a “keep your distance” scenario can be carried out in the field.

Susana added that starting to increase the number of project workers at Tangguh train 3 will be good news for the goods/service provider industry and the local community.

"The increase in the number of project workers will have a positive impact on the economy, create jobs and of course as a form of support for the upstream oil and gas industry to be able to maintain people's purchasing power during the Covid-19 outbreak," She said.

Tangguh train-3 is a national strategic project which when it is onstream will provide a significant additional national oil and gas production. This project will produce 3,000 BOPD of oil and 700 MMSCFD of gas. The investment value for the Tangguh train-3 project is estimated at the US $ 8.9 billion. 

    Meanwhile, until June 2020 the realization of the Tangguh train-3 project development for onshore was 83.27% of the target of 84.35% (rebaseline plan) and offshore development was 98.15% of the target of 99.39% (plan).

SKK Migas and KKKS continue to coordinate and seek innovations during the Covid-19 pandemic so that oil and gas production and lifting can remain optimal. The step in maintaining the Tangguh train-3 project and other upstream oil and gas projects is one way for SKK Migas to realize the production of 1 million barrels of oil and 12,000 MMSCFD of gas by 2030.

Investor Daily, Page-9, Saturday, Sept 12, 2020

World Oil and Gas Companies Interested in Checking Indonesia's Oil and Gas Potential

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that EOG Resources, one of the unconventional oil and gas companies from the United States, officially applied for membership in Indonesia's oil and gas data. By becoming a member, the company with its head office in Houston can see data on the national oil and gas potential.

Blogger Agus Purnomo in SKK Migas

"The success in attracting new investors to Indonesia shows that Indonesia's oil and gas potential is still considered very attractive," said SKK Migas Planning Deputy Jaffee Arizon Suardin.

He explained that SKK Migas' efforts to attract world-class potential investors to Indonesia began in 2019. At that time, his party held a roadshow to several countries to promote data on Indonesia's oil and gas potential, one of which was the United States.

"The results of the SKK Migas roadshow have been responded positively by EOG Resources, a company listed in the 186th rank of the Fortune 500 this year with a total oil production of 456 thousand barrels per day (bpd), NGL 134 thousand bpd, and gas 1,366 MMscfd," he explained. Jaffee.

Referring to the EOG page, last year, this oil and gas company recorded oil production of 166.6 million barrels, natural gas liquids (NGL), or liquefied petroleum gas (LPG) and the like 48.9 million barrels, and natural gas 499 billion cubic feet.

According to Jaffee, in July 2019, representatives of the EOG Resources team visited SKK Migas for two weeks to discuss in more detail the steps to be taken to decide on investment in Indonesia.

Until December, his party together with the Directorate General of Oil and Gas and the Center for Data and Information (Pusdatin) of the Ministry of Energy and Mineral Resources (ESDM) had conducted a brief regional review of non-conventional oil and gas.

"We found good initial indications regarding the potential for non-conventional oil and gas in Indonesia," he said.

Jaffee added EOG Resources' participation in Indonesia's oil and gas data membership is the next step in deciding investment in Indonesia.

"Of course, we hope that this good start will develop into future investment decisions. "With so many investors entering the upstream oil and gas sector, the opportunity for giant discoveries and development in order to increase production will be even greater," he said.

Indonesia has a total of 128 basins, of which only 19 basins have been produced and 109 other basins have not been explored. SKK Migas previously mapped ten potential giant discovery areas. 

    These ten areas are South Sumatra, North Sumatra, Central Sumatra, Tarakan Offshore, North East Java-Makassar Strait, Kutai Offshore, Buton Offshore, Northern Papua, Birds Body Papua, and Warim Papua.

Oil and gas exploration activities in Indonesia in recent years have been very quiet. Referring to data from the Ministry of Energy and Mineral Resources, investment realization for oil and gas exploration has not increased significantly. In 2013, investment realization for oil and gas exploration was recorded at the US $ 3.05 billion.

After that, the realization of this investment continued to fall to the US $ 2.6 billion in 2014, the US $ 970 million in 2015, US $ 916 million in 2016, and reached a low of US $ 567.55 in 2017. In 2018, investment realization for exploration oil and gas began to increase to the US $ 786.18 million.

Investor Daily, Page-8, Wednesday, Sept 9, 2020