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Pertamina Was Alarmed Rokan Block Production Continues to Decline Like the Mahakam Block

Written By pipeline-engineer.com on Wednesday, July 10, 2019 | 6:16:00 PM

This year's Rokan Block oil lifting is only 190 thousand BOPD, down 9.2% compared to 2018 which reached 209,478 BOPD.
Pertamina began to worry about the potential decline in Block Rokan production when it took over management from Chevron Pacific Indonesia in 2021.

Moreover, Chevron will reduce investment in the block. The company is also worried that the fate of the Rokan Block will be the same as the Mahakam Block. When managed by Pertamina, the Mahakam Block production continued to decline. "The decline in the production of the Mahakam Block is a lesson learned for us in managing the oil and gas blocks resulting from termination, especially the Rokan Block," said Pertamina's Managing Director, Nicke Widyawati, on Monday (18/7).

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) targets Block Rokan oil lifting this year to only amount to 190 thousand barrels of oil per day ((BOPD), down 9.2% compared to 2018 which reached 209,478 BOPD. Until the first semester of 2019, the realization of oil production ready for sale (lifting) of the Rokan Block only reached 194 thousand BOPD. This figure is lower than the first four months of this year which reached 195 thousand barrels per day (BOPD). While liffting gas in the Mahakam Block in the first semester of 2019 only reached 662 million cubic standards per day (MMscfd) or 60.18 percent of this year's target of 1100 MMscfd. This achievement is far lower than the realization of the Block's gas lifting when it was still managed by Indonesia's Total EP in 2017 which reached 1,286 MMscfd.

Therefore, Pertamina hopes that SKK Migas will help maintain the stable production of Rokan. Moreover, the block is one of the biggest contributors to national oil and gas lifting. SKK Migas also brought together Pertamina and Chevron to discuss the matter on Friday last week. But the Upstream Director of Pertamina Dharmawan Samsu has not been able to ascertain the investment scheme or model that will be carried out so that the production of Rokan Block will not decrease when managed by Pertamina in 2021. "Hopefully there is a way out of this problem," Dharmawan said. So far there have been three transition options discussed by Pertamina, Chevron, and SKK Migas. The first option is joint operation. The second option is to maximize the area around the Rokan Block which has not been managed and developed further. The last option, joint planning of the Rokan Block work plan.

The importance of EOR in the Rokan Block One of the things that should be a concern in the management of Rokan Block is the application of advanced enhanced oil recovery (EOR) technology. EOR technology is used by Chevron to maintain the production of the Rokan Block. The technology includes waterflooding and steamflood. In addition, Chevron also tested chemical injection technology at Minas Field, Rokan Block. But according to SKK Migas Deputy Operation Fatar Yani Abdurahman, Chevron no longer applies EOR technology before the contract expires in 2021. Even though the rate of decline in natural production (decline) in the Rokan Block has reached 4-5%.

"The EOR is not a one-two-year project. So it is impossible for Chevron to do that when the contract will end," Fatar said when contacted by Katadata.co.id last weekend. With this condition, Pertamina wants to immediately apply EOR technology to increase the production of the Rokan Block by 2021. "Pertamina plans this in order to boost Rokan production when it is officially managed by Pertamina. However, we still continue to discuss with Chevron for preparation and other opportunities," said Pertamina VP of Corporate Communication Fajriyah Usman to Katadata.co.id yesterday. The EOR technology is predicted to boost oil production. Chevron has tested the technology by injecting chemicals into oil wells in Minas Field. As a result, there is potential for oil production of up to 100,000 barrels per day. With this assumption, Rokan Block's production is projected to reach 500 thousand barrels per day by 2024 in accordance with Pertamina's proposal to the government.