Drill-stem testing (DST) in exploration wells is the last step of oil and gas exploration. It is the moment of truth in the quest for the elusive oil and gas.
Witnessing a drill-stem test can be daunting as the company has invested a lot of time and money to find a new oil or gas field. As DST results can move the company’s share prices, during the test, the test results can only be communicated to a few people back in the company headquarters.
I have witnessed both successful DST and unsuccessful DST.
Here are the five moments of truth of a DST in exploration wells.
The first moment of truth is after the DST valve is open, you begin to see air bubbles showing up in a bucket of water that is placed on the rig floor. As the air bubbles become stronger, you know something is coming out from the test interval.
The second moment of truth is when you see the fire at the burner. When you see the flare, it confirms you have found hydrocarbon.
The third moment of truth is when we know the flow rates of the hydrocarbon fluids that come out from the well.
The fourth moment of truth is after you have measured the initial bottomhole shut-in pressure and the final shut-in bottomhole pressure. Reservoir engineers will love these two pressures to be about the same. If the final BHSI pressure is much lower than the initial BHSI pressure, it may indicate the reservoir is quite small.
The fifth moment of truth is when you know the fluid composition when you receive the fluid analysis report from the laboratory. This last moment of truth may kill all the prior excitements during a DST.
Here is to illustrate the significance and implications of the composition of the reservoir fluid.
In 1973, AGIP discovered the huge East Natuna gas field off northern Natuna Island of Indonesia. However, as the gas contains a very large percentage of CO2 – 71% – the huge gas field is still undeveloped today.
Finally, perhaps the best moment of truth in a DST is when a difficult and high-risk test, such as testing a high pressure or high H2S well, is completed successfully and safely, and the people involved in the test can leave the rig with a sense of accomplishment.
The utilization of geothermal resources to produce electricity has been increasing since the invention of the first geothermal energy generator by Piero Ginori Conti in Italy in 1904.
By 2021, there are more than one hundred geothermal power plants located around the world producing electricity with a total installed capacity of 15854 MW.
Want to know when and where the first geothermal power plants were set up around the world?
Here are the first geothermal power plants built in significant geothermal energy-producing countries.
THE LARDERELLO PLANT – ITALY – 1913
The first and the oldest geothermal power plant in the world is in Larderello in Italy.
Following the invention of the first geothermal energy generator by Piero Ginori Conti in 1904, the Larderello 1 geothermal power plant was completed in 1913 with a capacity of 250 kW.
The Larderello area now has 34 geothermal power plants having a total capacity of 800 MW.
By the way, the Larderello steam field is so awesome that it is referred to as Valle del Diavolo – Devil’s Valley.
Today, Italy has a total installed capacity of 944 MW making it the seventh-largest geothermal energy producer in the world.
WAIRAKEI PLANT – NEW ZEALAND – 1958
New Zealand is the second country in the world that built a geothermal power plant.
The first geothermal plant in New Zealand, the Wairakei Unit 1 station was completed in 1958 with a capacity of 11.2 MW. The Wairakei geothermal plant is located at North Taupo.
Today, the Wairakei geothermal power plant has a total combined capacity of 330 MW provided by Wairakei power stations 1 to 16, Te Mihi power stations 1 and 2 and Poihipi power station.
The number of geothermal power plants in New Zealand has grown to 15 producing 1037 MW of electricity making it the fifth-largest geothermal producing country in the world.
THE GEYSERS UNIT 1 PLANT – USA – 1960
The first geothermal power plant in the US is located at the Geysers. The Unit 1 plant was completed in 1960 with a capacity of 11 MW.
The Geysers geothermal field in California is the most prolific geothermal producing field in the US also in the world. It now has 18 geothermal power plants and a total installed capacity of 1590 MW.
Today the US with more than 69 geothermal power plants located in various states has a total installed capacity of 3722 MW. This makes the US the biggest geothermal energy producer in the world.
MATSUKAWA PLANT – JAPAN – 1966
The first geothermal power generation plant in Japan is the Matsukawa Geothermal Power Plant (Matsukawa Jinetsu Hatsudensho).
The plant started operating in 1966 with an initial capacity of 9.5 MW. It now has an installed capacity of 23.5 MW.
Today, Japan has more than 20 geothermal power plants operating in 18 locations producing 603 MW of electricity making it the tenth-largest geothermal energy producer in the world.
BJARNARFLAG PLANT – ICELAND – 1966
Bjarnarflag geothermal station is the oldest geothermal power plant in Iceland. Bjarnarflag was completed in 1966 having a capacity of 3 MW.
Following the success of the Bjarnarflag plant, several other power plants were built in Iceland.
Iceland, the land of ice and fire, is a natural place to tap its geothermal resources for energy. The country today produces 754 MW of electricity from its geothermal resources making it the ninth-largest geothermal producer in the world.
As 99.96% of its energy needs come from renewable resources, it is probably the greenest country in the world.
CERRO PRIETO PLANT – MEXICO – 1973
The first geothermal power plant in Mexico, Cerro Prieto 1 was commissioned in April 1973.
The Cerro Prieto field is the world’s largest known water-dominated geothermal field. It has five power stations with a total installed capacity of 820 MW.
Today, Mexico, generating 963 MW of electricity is the sixth-largest geothermal energy producer in the world.
KIZILDERE PLANT – TURKEY – 1974
The first geothermal power plant in Turkey is in Kizildere.
The Kizildere geothermal power plant began its operation in 1974 as a prototype system with a 500 KW capacity.
Ten years later, the Kızıldere Jeotermal Elektrik Santralı plant was commissioned in 1984 with an installed capacity of 17.4 MW.
In 2013, the Kizildere Geothermal Power Plant reached an installed capacity of 95 MW making it Turkey’s biggest.
Today, with a total of 1710 MW capacity, Turkey is the fourth largest geothermal energy producer in the world.
AHUACHAPAN PLANT – EL SALVADOR – 1975
The first geothermal power plant in El Salvador is located in Ahuachapan. It was built in 1975 with a capacity of 95 MW.
The second geothermal plant in El Salvador, the Berlin Power Plant, was later built with an installed capacity of 109 MW.
Currently, with a total capacity of 204 MW, geothermal energy generates 20% of the total energy needs in El Salvador.
The contribution of electricity from geothermal resources is set to increase in the future and two new geothermal power plants are scheduled to come online in 2023 and 2026 in the San Vicente and Chinameca fields.
LEYTE PLANT – THE PHILLIPPINES – 1977
The first geothermal power plant in the Philippines, the Leyte Geothermal Power Plant began operation in 1977.
Located on the island of Leyte, the plant started as a pilot plant using a portable 3 MW power generation unit connected to a wellhead.
With the success of the pilot plant, Leyte island now has five geothermal power plants.
Other geothermal plants in the Philippines are in the islands of Luzon, Mindanao, and Negros.
Today the Philippines with a total installed capacity of 1918 MW is the third largest geothermal energy producer in the world.
OLKARIA I POWER STATION – KENYA – 1981
Olkaria I Geothermal Power Station is the first geothermal power plant in Kenya and Africa. The first unit having a capacity of 15 MW was commissioned in 1981.
Several units were added to the Olkaria I facility in later years bringing its total installed capacity to 185 MW by 1985.
Today Kenya has a total installed capacity of 861 MW making it the eighth largest geothermal energy producer in the world.
KAMOJANG PLANT – INDONESIA – 1982
Operating since 1982, the 235 MW Kamojang geothermal plant is the first geothermal power plant in Indonesia. It is located in the Garut area in West Java.
The Kamojang geothermal reservoir was first discovered by the Dutch more than one hundred years ago when it successfully drilled the first steam-producing well in Indonesia.
Today Indonesia has a total installed capacity of 2276 MW making it the second-largest geothermal energy producer in the world.
MOMOTOMBO PLANT – NICARAGUA – 1983
The Momotombo plant is the first geothermal power plant in Nicaragua.
Its first power generating unit of 35 MW was completed in 1983. A second 35 MW unit was later added in 1989 bringing the total capacity to 70 MW.
Nicaragua’s second geothermal plant is the San Jacinto Tizate which was completed in 2013 with an installed capacity of 72 MW.
MIRAVALLES PLANT – COSTA RICA – 1994
The first geothermal power plant in Costa is the 55 MW Miravalles plant commissioned in 1994.
Today with a total installed capacity of 207 MW, Costa Rica is the twelfth largest geothermal producer in the world.
ORTITLAN PLANT – GUATEMALA – 1998
The first geothermal power generation unit in Guatemala was built in Amatitlán geothermal area in 1998. It started as a portable power plant of 5 MW.
A full-scale 20 MW geothermal power plant, the Ortitlan, was later built in the Amatitlan area in 2008.
Guatemala’s second geothermal plant, the Orzunil, located in the Zunil geothermal area was completed with a capacity of 24 MW in 2001.
CERRO PABELLON PLANT – CHILE – 2017
The first geothermal power plant in Chile was built in 2017 by Geotermica del Norte (GDN), a joint venture between Enel Green Power Chile and ENAP.
Located at 4500 meters above sea level, the Cerro Pabellón is the highest geothermal plant in South America. It is located on the high plateau of the Atacama Desert in the Antofagasta Region of Chile.
The plant, which uses high enthalpy technology with a binary cycle, is the only operational geothermal plant in South America.
Its third power station with a capacity of 33 MW was completed in 2021 giving Cerro Pabellon a total power of 81 MW.
PLATANARES PLANT – HONDURAS – 2018
The first geothermal power plant of Honduras, the 35 MW Platanares geothermal plant was inaugurated in 2018.
CASANARE PLANT – COLOMBIA – 2021
Colombia inaugurated its first geothermal power unit located in Casanare in March 2021.
The first of its kind, this innovative 100 KW power unit takes advantage of the hot water produced along with the oil from the Las Maracas field.
YANGBAJAIN PLANT – TIBET – 1977
Yangbajain is the first geothermal power plant in Tibet, China. The plant was initially completed in 1977. It now has an installed capacity of 24 MW.
The Yangbajain plant is located at an elevation of 4800 meters above sea level making it the highest geothermal plant in the world.
The world is endowed with huge geothermal resources. As the world marches toward net zero-emission, we shall see the application of geothermal energy as a renewable resource to generate the electricity we need will continue to expand.
Indonesia inaugurated two geothermal plants in 2021: the 45 MW Unit II Sorik Marapi Geothermal Power Plant on 28 July 2021 and the 98.4 MW Rantau Dedap Power plant on 26 December 2021.
This article is written by Jamin Djuang – Chief Learning Officer of LDI Training – based on information from various sources.
The upstream oil and gas operators in Indonesia contributed 6.67 billion USD of revenue for the government of Indonesia in the first half of 2021. This amount is 91.7% of the full-year Indonesian government revenue target from E&P activities in 2021.
Mr. Dwi Soetjipto, the head of SKK Migas, is thankful that the 2021 first-half revenue contribution was better than expected in a meet-the-press event on 16 July 2021.
Here are the results from the oil and gas exploration and production activities in Indonesia in the first half of 2021 according to SKK Migas.
Oil Lifting Costs
The oil industry managed to lower the oil and gas production cost in 2021. The average production cost in the first half of this year is USD 12.17 per BOE (barrel of oil equivalent) whereas it was USD 13.71 per BOE in the same period last year.
Oil and Gas Production
The average oil production in the first half of 2021 is 667,000 BOPD. This is below the 705,000 BOPD target set by the government for 2021.
The average gas production is 5430 MMSCFD in the first six months of 2021. This is below the 5638 MMSCFD targets of the government for 2021.
To make up for the shortfall of oil and gas production, SKK Migas is asking the oil operators to speed up their work programs.
The average combined oil and gas production in the first half of 2021 is 1.64 million BOEPD.
To stimulate oil and gas exploration and production in Indonesia, SKK Migas is pushing for government approval on several incentives.
The three incentives that are currently being proposed are:
Providing a certain type of tax holiday to all oil and gas operators
Reducing the processing fees charged by the Badak LNG plant to US$0.22 per MMBTU.
Lowering tax paid by companies who provide certain types of goods and services to oil companies.
Completed Oil and Gas Projects in Indonesia
Seven upstream oil and gas projects out of the 12 targeted for 2021 have been completed in the first half of this year, according to SKK Migas.
These 1.46 billion USD projects contributed 9850 BOPD of new oil and 475 MMSCFD of gas.
Here are the 7 completed projects: 1. First phase production from Belato-2 oil field by Seleraya Merangin Dua in South Sumatera
2. EOR in Jirak Field by Pertamina EP in South Sumatera
3. Development of KLD gas field by Pertamina Hulu Energi ONWJ
4. Gas Supply to the Balikpapan refinery from Bontang by Pertamina Hulu Mahakam
5. West Pangkah field development by Saka Indonesia Pangkah Ltd
6. Merakes gas field development in East Sepinggan block by ENI
7. Gas supply from South Jambi B block to PLN Jambi by Jindi South Jambi B.
The Jambaran Tiung Biru Project
SKK Migas is working closely with Pertamina EP Cepu on the development of the significant Jambaran Tiung Biru project. This gas field development project in East Java is categorized as a national strategic project.
The Jambaran Tiung Biru project is more than 90% complete and gas production is expected to come on stream in the fourth quarter of 2021.
Plans of Field Development
SKK Migas approved 14 plans of field development (POD) that will potentially increase the oil and gas reserves by 131.2 million barrels of oil equivalent (BOE).
Exploration Drilling and Discoveries
Oil operators completed seven exploration wells with the following results:
Gas discovery in two wells: Maha-02 and Fanny-02
Oil discovery in two wells: Hidayah-01 and MSDE-01A
Three dry wells: Barakuda-1x, NSD-1 ExpTail and Plajawan Dalam.
The P50 reserves from Well Hidayah-01 are 87 MMBOE. The P50 combined reserves from wells Maha-02, Fanny-02, and MSDE-01A are 154 MMBOE.
P50 reserves are oil and gas reserves that have a 50% or greater probability of being recovered from a petroleum asset.
Drilling, Workovers, and Seismic Survey Activities
Number of development wells drilled – 186
Number of exploration wells drilled – 13
Number of workovers – 309
Number of well services – 11307
2D seismic survey completed – 1917 Km
3D seismic survey completed – 673 Km2
This article is adapted by Jamin Djuang based on the information provided by SKK Migas. He is the Chief Learning Officer of LDI Training.
After 97 years in Indonesia and producing more than 12 billion barrels of oil from the jungle in central Sumatera, Chevron Pacific Indonesia finally hands over its vast operation in the Rokan block to Pertamina Hulu Rokan on 8th August 2021.
The amazing story of Chevron Pacific Indonesia began in 1924 when Standard Oil of California (Socal), sent its exploration team to Indonesia to assess the oil potential in the basin in central Sumatera.
After the initial exploration expedition, Standard Oil of California set up the Dutch registered company, NV Nederlandsche Pacific Petroleum Maatschappij (NPPM), in June 1930 so it could conduct business in Indonesia, which was under the control of the Netherlands East Indies (NEI) at that time.
In 1936 NPPM became CALTEX when Socal and Texaco (Texas Oil Company) jointly formed a company called California Texas Petroleum Corporation to expand their operation in Asia, Australia, and New Zealand.
For most of the history of Chevron Pacific Indonesia, the company was known as Caltex or CPI (Caltex Pacific Indonesia). For this reason, the name Caltex or CPI is used frequently in this article to describe the activities and achievements of Chevron Pacific Indonesia.
The achievements of Caltex in Indonesia are awesome. Here are some of them:
It discovered two giant oil fields in Central Sumatera – The Duri and the Minas field.
It also discovered more than 100 oil and gas fields in the Rokan block and several other blocks.
It is the longest surviving oil company that began its operation in Indonesia as a Dutch company.
It is the biggest oil producer in Indonesia of all time. It produced more than 12 billion barrels of oil in Sumatera and its daily production reached 1000,000 BOPD at its peak.
It operated the famous and successful Duri steam flood.
Rokan block is the largest oil concession block in Indonesia.
It drilled a total of 16023 wells in the four blocks it operated: The Rokan block, the CPP block (Coastal Plain Pekanbaru), the Siak block and the MFK block (Mountain Front Kuantan).
MILESTONES OF CHEVRON PACIFIC INDONESIA
As the 8th of August 2021 marks the end of Chevron Pacific Indonesia, here are the key milestones of Caltex Pacific Indonesia’s operations in Indonesia.
Standard Oil of California sent a team of geologists to Indonesia in March 1924 to survey the oil potential in Central Sumatera.
Chevron registered the company Nederlandsche Pacific Petroleum Maatschappij (NPPM) in 1930 so it could operate in Indonesia which was under the rule of the Netherlands East Indies.
Chevron and Texaco (Texas Oil Company) jointly formed California Texas Petroleum Corporation (Caltex) in 1936 to market its oil products in Asia, Australia, and New Zealand.
In Indonesia, NPPM became Caltex Pacific Petroleum Maatschappij (CPPM).
Caltex then received the right to explore and produce oil in an area in central Sumatera from the Netherlands East Indies. The area is now known as the Rokan block.
Caltex made its first discovery in Indonesia when it discovered oil in the Sebanga field in Riau in August 1040.
Caltex discovered the giant oil field Duri in 1941. Duri has the largest oil deposit in Southeast Asia at that time.
Caltex discovered another giant oil field, the Minas field, in December 1944.
Indonesia declared its independence in 1945. This is the event that changed the ways how oil companies operated in Indonesia.
PT Caltex Pacific Indonesia, commonly referred to as CPI, was established in 1951 as an Indonesian company and was awarded the right from the government of Indonesia to continue to operate the Rokan block under a work contract scheme.
Oil production from the Minas field started in April 1952 and was exported from Parawan and Pakning. The initial oil production from the Minas field was 15,000 BOPD.
The Duri field started to produce oil in February 1954.
Caltex discovered the Bekasap field in September 1955.
Caltex built the first road that connected Pekanbaru and Dumai. It was also the first road that linked the east and west coasts of the island of Sumatra.
Caltex completed the Dumai oil export terminal in July 1958. At the same time, Caltex also completed the construction of oil pipelines from Duri to Dumai.
Minas crude was exported from the Dumai terminal beginning in January 1959.
PT Caltex Pacific Indonesia appointed Julius Tahija, the first native Indonesian as its president in 1963.
Oil production from the Bekasap field began in June 1965.
Oil production from the Duri field during the primary recovery phase peaked at 65,000 BOPD in 1965.
The Pematang field came online in July 1966 and the Pungut field in August 1966.
Caltex cumulative oil production reached 1000,000,000 barrels in August 1967.
Caltex constructed an extensive pipeline and road networks to connect major fields such as Bangko, Bekasap, Pematang, Petani, and Kotabatak. These fields significantly increased its oil production output.
The cumulative oil production from the Minas field reached 1000,000,000 barrels in May 1969.
The Petapahan field began producing oil in January 1973.
Daily oil production of Caltex reached 1000,000 BOPD for the first time in May 1973.
Caltex started the Duri steam flood pilot project.
CPI completed the construction of the 350-meter long bridge over the Siak river connecting the city of Pekanbaru to Rumbai, and former President Soeharto inaugurated the bridge in April 1977. Rumbai is the area where the main office and housing complex of Caltex are located.
Caltex completed its first oil Gathering Station under the Duri steam flood project. More gathering stations were later added as the Duri steam flood expanded.
Caltex completed its main office building in Rumbai.
The late former President Soeharto inaugurated the Duri Steam Flood on 3 March 1990.
Caltex Pacific Indonesia obtained a 20-year extension to its production sharing agreement with Indonesia to operate the Rokan block until 2021.
Caltex implemented the Strategic Business Unit management system in 1995.
Caltex completed the Dumai Main Office in May 1997.
Chevron acquired Texaco in October 2000.
Caltex handed over the Coastal Pekanbaru Plain (CPP) block which it had acquired in 1971 to PT Bumi Siak Pusako – Pertamina Hulu on 18 August 2002.
The new operator is a joint operation body between PT Bumi Siak Pusako (BSP) which is owned by the local government in Riau and Pertamina.
With the acquisition of Texaco by Chevron, Caltex Pacific Indonesia was renamed Chevron Pacific Indonesia in September 2005.
Chevron Pacific Indonesia came under the umbrella of Chevron IndoAsia Business Unit in 2005 along with Chevron Indonesia Company (ex-Unocal Indonesia Company), Chevron Makassar (the Makassar Deepwater Project), Chevron Geothermal Indonesia (Ex-Unocal geothermal projects in Darajat and Salak), Mandau Cipta Tenaga Nusantara, and Chevron Geothermal Philippines.
Chevron Pacific Indonesia marked the 11th billion barrels of oil produced from its Sumatra operation in 2008.
Chevron Pacific Indonesia handed over the operatorship of the Langgak block to PT Sarana Pembangunan Riau in January 2010.
With the help of the successful steam flood, the Duri field’s cumulative oil production reached 2.6 billion barrels in 2018.
Total cumulative oil production of CPI from all fields reached 13 billion barrels.
Chevron Pacific Indonesia hands over the prolific Rokan block to Pertamina Hulu Rokan on 8 August 2021. Rokan block with an area of 6220 KM2 is the largest oil concession block in Indonesia. Stretching over five “kabupaten” (regencies) in central Sumatera it produced oil from more than 12000 wells located in 80 fields. It also operates one of the biggest and most successful steam floods in the world.
The top ten producing oil fields in the Rokan block are Minas, Duri, Bangko, Bekasap, Balam South, Kotabatak, Petani, Pematang, Petapahan, and Pager.
Although the total oil production from the Rokan block has come down to 160,000 barrels per day, it is still a very significant oil asset for Indonesia as it is contributing 24% of the country’s total oil production according to SKK Migas.
Presidents of Caltex Pacific Indonesia Since 1963
One of the keys to success of CPI is its adaptability. The company took initiatives to work well with both the central government of Indonesia and the local government and the communities.
Caltex Pacific Indonesia decided in 1963 to Indonesianize the company. It appointed Mr. Julius Tahija as the first native Indonesian as the company president. All its subsequent presidents have been Indonesians.
Here are the past presidents of Chevron Pacific Indonesia since 1963:
1. Julius Tahija, President & Chairman of the Board of PT Caltex Pacific Indonesia (1963 – 1977)
2. Haroen Al Rasjid, President & Chairman of the Board of PT Caltex Pacific Indonesia (1977 – 1993)
3. Baihaki Hamid Hakim, President & Chairman of the Board of PT Caltex Pacific Indonesia (1993-1999)
4. Humayunbosha, President of PT Caltex Pacific Indonesia (1999-2004),
5. W. Yudiana Ardiwinata, President of PT Chevron Pacific Indonesia (2004-2005),
6. Suwito Anggoro, President of PT Chevron Pacific Indonesia and Deputy Managing Director Indonesia Business Unit (2005-2010),
7. Abdul Hamid Batubara, President of PT Chevron Pacific Indonesia and Deputy Managing Director Indonesia Business Unit (2010-2014),
8.Albert B. M. Simanjuntak, President of PT Chevron Pacific Indonesia and Deputy Managing Director IBU (2014-2021),
Although the signboard with a Caltex logo will no longer be seen at the entrance of Rumbai camp, the company will continue to be remembered by people who have worked for the company and the people who have lived in the surrounding communities.
Caltex will be remembered not just for what it did in the oil fields, but it will also be remembered for what it did for the surrounding people and communities.
Here are some of the most notable legacy of Caltex:
Building the first state senior high school (SMAN-1) in Pekanbaru in 1957
Completion of the 350 meter-long bridge over the Siak River in 1977.
Establishing the polytechnic college – Politeknik Caltex Riau in 2001.
This article is written by Jamin Djuang. He had been in Rumbai and Duri conducting training for Caltex and traveled the private road connecting Rumbai and Duri. He enjoyed eating in the Caltex cafeteria in Rumbai where it served both delicious Indonesian and western food.
Some of the information in this article was provided by Mr. Elthaf who worked for CPI in Minas field for 36 years.
Training and development have become ever more important as companies face significant skills gaps during this rapidly changing business environment.
How will you know if your training meets the skills gaps and generates the desired impacts to make your company successful?
The original model of training evaluation developed by Raymond Katzell suggested that training should be evaluated in four steps:
Step 1: Measure reaction.
Step 2: Measure learning.
Step 3: Measure behavior.
Step 4: Measure results.
This is the model that Kirkpatrick promoted for many years. Dr. Jack Phillips, the author or editor of more than 100 books, went further to define the methodology and add another step. He, with many other practitioners, began to call these levels. These levels of evaluation are
Level 1 – At level one, the results of training are assessed based on participants’ reactions to the training and the action plan submitted by the participants. This is commonly done immediately after the training.
Level 2 – At level two, the results of training are assessed by how much learning is acquired by participants. This is done by conducting some form of testing.
Level 3 – At level three, the training evaluator will find out if the acquired skills, knowledge, or attitude (SKA) are applied and implemented by the trainees. This is usually done several weeks or months after training.
Level 4 – At level four, evaluators assess the impact, both tangible and intangible, of the training several weeks or months after the training. Examples of tangible impacts are cost savings, higher productivity, better quality, sales increase, etc. Examples of intangible benefits are attitude improvement, better communication, etc.
Level 5 – At level five, evaluators measure the return on investment of training or any other people development program.
Phillips went on to develop process standards and pushed the methodology through the ROI Certification process. Today, over two-thirds of the Fortune 500 companies use this methodology, 26 governments around the world, many NGOs, non-profits, approximately 300 health care organizations, and 150 universities. It is now the most used evaluation system in the world.
ROI is an important measure that is used to show the efficient use of funds. Management is interested in ROI as it compares the actual monetary benefits of the training program relative to the total costs of the training.
STEPS TO MEASURE THE ROI
Here are the steps to measure the ROI of a training program.
Design the training based on business needs.
Plan the training to be evaluated at all levels.
Design the training such the skills, knowledge, or attitude taught can be applied and implemented on the job.
Collect Level 1 data – reactions and action plans of trainees- at the end of training.
Collect Level 2 data – learning – at the end of training.
Collect Level 3 data – application and implementation – several weeks or months after training.
Collect Level 4 data – Both the tangible business impacts and the intangible impacts – several weeks or months after training.
Isolate the effect of the program by identifying other factors that may impact the outcomes of the program. This is a critical aspect in producing credible ROI results.
Convert Level 4 data into monetary values of the training benefits.
Annualize the monetary values to determine the monetary benefit of the training over 12 months.
Collect data on the total costs of training.
Calculate the ROI using this formula. ROI = (Benefits – Costs)/Costs x 100%
THE BENEFITS OF MEASURING ROI
As the need for skill-building is increasing and the training budget is getting bigger, it is important to know whether you are getting positive values from your investment in training.
When you have the ROI data to prove to management the value of your training, you will get more supports for the training programs you plan conduct in the future.
Dr. Jack J. Phillips is the pioneer in measuring the ROI in training. Over the past 20 years, Dr. Jack Phillips and Dr. Patti Phillips have trained and certified thousands of training professionals on the ROI Methodology. More than two-thirds of the Fortune 500 companies are applying this methodology in the training they conduct.
How about your organization? Does your management ask you to measure the ROI or financial benefits of your training programs? Have you done this before? Do you have the competency and confidence to do it?
Indonesia currently has six oil refineries and they are all operated by Pertamina, the national oil company of Indonesia.
Here are the top five refineries in Indonesia:
Dumai Refinery, officially known as Unit Pengolahan II Dumai
Plaju Refinery, officially known as Unit Pengolahan III Plaju
Cilacap Refinery, officially known as Unit Pengolahan IV Cilacap
Balikpapan Refinery, officially known as Unit Pengolahan V Balikpapan
Balongan Refinery, officially known as Unit Pengolahan VI Balongan
Besides these five refineries, Pertamina operates a small 10,000 BOPD Kasim refinery in Sorong, West Papua.
With a total capacity to process 1,046,700 barrels of crude oil per day, all refineries in Indonesia are currently supplying about 50% of the domestic fuel needs.
In 2019, Indonesia imported 24.7 billion liters of fuel.
To meet its domestic fuel needs, Indonesia intends to produce all the fuels it needs by 2026. It hopes to increase the crude processing capacity to two million barrels per day in 2025 under the ambitious 17 billion dollar Refinery Development Master Plan (RDMP).
Based on the RDMP, the top five refineries will be upgraded to increase their capabilities and capacity. Currently, Pertamina is expanding and upgrading the Cilacap and Balikpapan refineries.
Pertamina also has a plan to build two new refineries: one in Tuban in East Java and one in Bontang in East Kalimantan.
The project to construct the 300,000 barrels of crude oil per day Tuban refinery is currently underway. It is expected to complete in 2026.
Here are the details of the top five refineries.
Dumai refinery started operating in 1971 and it is located in Dumai in Sumatera.
The Dumai refinery is designed with a capacity to process 170,000 barrels of crude oil and it supplies Sumatera with fuels such as gasoline, aviation fuel, diesel fuel, kerosene, solvent, green coke, and LPG.
This refinery is unique as it produces the power it needs using the natural gas produced from the surrounding gas fields namely the Grissik field operated by ConocoPhillips, the fields in the Bentu block operated by Mega Energi Persada (PT EMP), and the Jambi Merang gas fields operated by Pertamina Hulu Energi Jambi Merang (PHE Jambi Merang).
By using the natural gas produced from these fields, the Dumai refinery can reduce its fuel cost by 40%.
The Plaju refinery and petrochemical complex comprises two old refineries located in the Palembang area in South Sumatera: one in Plaju and another one in Sungei Gerong.
The refinery in Plaju is the oldest existing refinery in Indonesia. It was built in 1904 by BPM (Batavia Petroleum Maatschappy), a predecessor of Shell. Pertamina acquired this refinery from BPM in 1949.
The refinery at Sungei Gerong was built by SVPM (Standard Vacuum Petroleum Maatschappij) 1926. Pertamina acquired this refinery from Stanvac in 1970.
Pertamina integrated these two refineries in 1972 by constructing connecting pipelines and officially called them Unit Pengolahan III Plaju.
The integrated Plaju refinery and petrochemical complex has a combined refining capacity of 118,000 barrels per day. It processes crude oil and intermediate products to produce gasoline, kerosene, diesel fuel, the B20 biodiesel fuel, aviation fuel, and fuel oil.
The types of gasoline it produces include the Premium, Pertalite, Pertamax, and Pertamax Racing.
The Plaju refinery also produces petrochemicals such as Polypropylene and PTA.
According to Pertamina, the Plaju refinery and petrochemical complex will see a new stand-alone 20,000 barrels per day “Green Refinery” in 2024 taking advantage of the locally produced crude palm oil (CPO). The new unit will produce green diesel fuel, green aviation fuel, green naphtha and green LPG.
The Cilacap refinery is the largest and most integrated refinery and petrochemical complex in Indonesia. With its current refining capacity of 348,000 barrels of crude oil per day, it produces 34% of the total fuel production in Indonesia.
The Cilacap refinery was initially completed in 1976 with a capacity of processing 100,000 barrels of crude oil per day. However, as a strategic refinery due to its location being in Central Java, it has been revamped and expanded several times.
Today, this Pertamina Unit IV refinery and petrochemical complex consists of three units:
Oil Refining Unit #1
Oil Refining Unit #2
Oil Refining Unit #1 was completed in 1976 with a capacity of processing 100,000 barrels of oil per day and it was designed to specifically handle crude oil from the Middle East.
This refining unit produces gasoline, lube oil, and asphalt. It underwent debottlenecking in 1998 to increase its refining capacity to 118,000 BOPD.
To meet the increasing demand for fuel, Oil Refining Unit #2 was completed in 1983 with a capacity of 200,000 BOPD. Its capacity was later increased to 230,000 BOPD in 1998.
This second unit is designed to handle both crude oil from the Middle East and Indonesia.
The Paraxylene Unit, completed in 1990, produces petrochemicals such as paraxylene, benzene, raffinate, and heavy aromatic. Some of these products are shipped to the Plaju refinery for further processing.
The famous Balikpapan refinery was completed in 1922 by BPM (Bataafsche Petroleum Maatschappij), the predecessor of Royal Dutch Shell. It was built to process the crude oil that BPM had discovered in Balikpapan in East Kalimantan.
The refinery was heavily damaged twice during World War II and subsequently restored. It was later acquired by Pertamina from BPM in 1949.
The refinery has been expanded and upgraded several times to meet the increasing demand for fuel in the eastern part of Indonesia.
The Balikpapan refinery is the second-largest refinery in Indonesia. At its current crude oil processing capacity of 260,000 barrels, it processes 25% of the total crude oil intake and supplies about 15% of the fuel needs in Indonesia.
Under the RMDP refinery expansion plan, it is set to become even bigger. It is currently undergoing a massive 5 billion dollar expansion which will increase its processing capacity from 260,000 barrels per day to 360,000 barrels per day.
Besides increasing its processing capacity, the expansion project is also aimed to improve its crude flexibility and product quality. The refinery will have the capability to produce high-quality Euro V standard fuels.
The Balikpapan refinery expansion includes:
A residual fluid catalytic cracker (RFCC) unit with a design capacity of 90,000 barrels per stream per day (BPSD)
An LPG sulfur removal unit,
A propylene recovery unit
An 80,000 BPSD middle distillate hydrotreater.
The project will also upgrade the existing vacuum distillation unit (VDU), crude distillation unit (CDU), hydrocracker unit (HCU), and LPG recovery units to increase the production of Euro V gasoline, diesel fuel, and LPG by 100,000 BPD, 30,000 BPD and 930 tons respectively per day.
Included in the project is the expansion of the crude oil receiving capacity by adding:
A single-point mooring system and a pipeline end manifold, capable of handling crude carriers with 320,000 deadweight tonnage (DWT).
A 20-inch onshore pipeline from Lawe-Lawe terminal to Panajam terminal.
A 52-inch subsea pipeline from the Panajam terminal to the refinery.
Two new one-million barrel capacity crude oil storage tanks.
Located in Indramayu, West Java, the Balongan refinery was completed in 1994. It was revamped in 2003 to increase its processing capacity to 130,000 barrels of crude oil per day.
The Balongan refinery and petrochemical complex is designed to process crude oil from the Duri and Minas fields.
It produces a variety of fuels such as Premium, Pertamax, Pertamax Plus, diesel fuel, kerosene, and LPG. It also produces petrochemicals such as propylene.
This Unit VI refinery of Pertamina is a strategic and vital refinery to Indonesia as it supplies the fuel needs of the nation’s capital city of Jakarta and West Java.
The Balongan refinery prides itself for being the refinery that applies eco-friendly technology and that processes residue into high-quality products.
The refinery experienced a fire incident on 29th March 2021. Four of its storage tanks caught fire.
The 10,000 BPD Kasim refinery is the newest but the smallest refinery of Pertamina.
Located in Sorong in West Papua, Kasim refinery was completed in 1997 to meet the needs for fuels in the most eastern part of Indonesia. It takes advantage of processing the crude oil produced from the nearby fields of Walio and Salawati.
This Pertamina Unit VII refinery is currently operating below its design capacity of 10,000 BOPD. This is due to the declining oil production from the two oil fields.
To make the plant economical to operate, Pertamina will need to increase the crude supply by bringing in crude oil via oil tankers. To do so, it will need to construct four 110,000 barrel storage tanks.
Currently, the Kasim refinery is supplying less than 15% of the fuel needed in Papua and Maluku. It is hoped that Kasim can process 50,000 BOPD in the future.
This article is adapted by Jamin Djuang from information published by Pertamina and other sources. He is the Chief Training Officer of LDI Training.
PT Pertamina (Persero) is the national oil company of Indonesia, and also the largest company in Indonesia. It is the parent holding company of all the many Pertamina subsidiary companies.
Pertamina is big. As an integrated oil company, Pertamina involves in oil and gas exploration and production, refining and petrochemicals, gas distribution through pipelines, distribution of fuels, and lube oil to every corner of the land. It is also a producer of renewable energy such as geothermal energy.
On the upstream side, Pertamina owns many oil fields and work areas and has vast and expansive oil exploration and production operations in Indonesia. It also has oil and gas interests in several other countries.
Pertamina’s upstream oil and gas interests are under the wings of PT Pertamina Hulu Energi (PHE). It is the sub-holding company of PT Pertamina (Persero) in charge of its entire upstream oil and gas assets and operations in Indonesia and overseas.
The current CEO of PT Pertamina Hulu Energi is Budiman Parhusip.
Pertamina has come a long way. Its assets include oil and gas assets that Pertamina itself develops, assets it acquired from BPM (Bataafse Petroleum Maatschappij), assets it acquired from international companies upon the expiry of their production sharing contracts, and its oil and gas assets overseas.
Pertamina grew significantly in 2021 as it acquired the huge and prolific Rokan block from Chevron in Sumatera.
As Pertamina’s oil fields are located in many islands of Indonesia covering a vast area of more than 113,000 Km2, its assets and operations are divided into five regions. Each region is further divided into zones.
Here are the five regions including the zones under each region and their leadership teams.
REGION 1- Sumatera
Pertamina’s assets in Sumatera fall under Region 1 and they are managed under PT Pertamina Hulu Rokan (PHR).
Consisting of four zones, Pertamina Hulu Rokan manages the following assets:
In Zone 1 – North Sumatera Offshore (NSO), North Sumatera Basin (NSB), Rantau, Pangkalan Susu, West Glagah Kambuna, Siak, Kampar, Lirik, Jambi, Jambi Merang, Jabung
In Zone 2 – North Rokan (Rokan Utara)
In Zone 3 – South Rokan (Rokan Selatan)
In Zone 4 – Ogan Komering, Raja Tempirai, Ramba, Corridor, Prabumulih, Limau, Pendopo, Adera
Here is the current leadership team stewarding Pertamina’s exploration and production activities in Region 1.
Novy Hendri – VP Exploration
Tri Sasongko – VP Development and Drilling
Junizar Harman – VP Operation and Production
Saptiadi Nugroho – VP Business Support
Ani Surakhman – General Manager of Zone 1
Ahmad Miftah – General Manager of Zone 4
REGION 2 – Java and Natuna
Region 2 covers Pertamina upstream activities in West Java and the Natuna Sea, and they are managed under PT Pertamina Eksplorasi dan Produksi (PEP).
Here are the zones in Region 2 and the assets under each zone.
Zone 5 – Offshore North West Java (PHE ONWJ), Abar, Anggursi
Zone 6 – Offshore South East Sumatera (PHE OSES)
Zone 7 – Tambun, Subang, Jatibarang, East Natuna, The Natuna Sea Block A
Here is the new leadership team of Region 2.
Muharram Jaya – VP Exploration
Merry Luciawaty – VP Development and Drilling
Wisnu Hindadari – VP Operation and Productions
Bongbongan Tampubolon – VP Business Support
Achmad Agus Miftakhurrohman – General Manager of Zone 5
Cosmas Supriatna – General Manager of Zone 6
Astri Pujianto – General Manager of Zone 7
REGION 3 – Kalimantan
Region 3 assets and operations are located in Kalimantan, and PT Pertamina Hulu Indonesia (PHI) is the operating holding company of Pertamina in Region 3.
Here are the zones in Region 3 and the assets in each zone:
Zone 8 – Pertamina Hulu Mahakam (PHM), Pertamina West Ganal (PHWG), East Sepinggan
Zone 9 – Pertamina Hulu Sanga Sanga (PHSS), Sangata, Maratua, Tanjung
Zone 10 – Pertamina Hulu Kalimantan Timur (PHKT), Bunyu, Tarakan, Nunukan, East Ambalat, Simenggaris, Ambalat, Bukat
Here is the leadership team supervising Pertamina’s exploration and production activities in Region 3.
Bayu Giriansyah – VP Exploration
Arief Prasetyo Handoyo – VP Development and Drilling
Rachmad Wibowo – VP Production
Satya Nugraha – VP Business Support
Agus Amperianto – General Manager of Zone 8
Andri Haribowo – General manager of Zone 9
Raam Krisna – General Manager of Zone 10
REGION 4 – East Java and Eastern Part of Indonesia
Pertamina’s oil and assets located in the eastern part of Indonesia and East Java are under Region 4.
PT Pertamina Eksplorasi dan Produksi Cepu (PEPC) is the operation holding company in charge of Region 4.
Here are the zones in Region 4 and their assets:
Zone 11 – Alas Dara Kemuning (PEPC ADK), Cepu, West Madura Offshore (PHE WMO), Randugunting, Sukowati, Poleng, Tuban East Java
Zone 12 – Jambaran Tiung Biru (JTB), Banyu Urip
Zone 13 – Donggi Matindok, Senoro Tolidi, Makassar Strait
Zone 14 – Papua, Salawati, Kepala Burung, Babar Selaru, Semai
Here is the current leadership team of Region 4.
Ali Sundja – VP Development and Drilling
Muhamad Arifin – VP Operation and Production
Fransiono Lazarus – VP Business Support
Dedy Syam – General Manager of Zone 11
Iman Nur Akbar – General Manager of Zone 13
Djudjuwanto General Manager of Zona 14
REGION 5 – International
Pertamina also has oil and gas interests in several countries outside Indonesia. Its international E&P operations and assets fall under Region 5 and they are under the management of PT Pertamina International Eksplorasi dan Produksi (PIEP).
Here are the zones of Region 5 and their locations:
Zone 15 – Algeria
Zone 16 – Iraq
Zone 17 – Malaysia
Here is the current leadership team supervising Pertamina’s international exploration and production activities.
Fuji Koesumadewi – VP Exploration
Yosi Hiroshiadi – VP Development and Drilling
Charles P. Sialagan – VP Operation and Production
Ria Noveria – VP Business Support
Edwil Suzandi – Country Manager in Algeria
The total daily oil and gas production of Pertamina in 2021 is 897,000 BOEPD according to Budiman Parhusip, CEO of PT Pertamina Hulu Energi.
Here is the breakdown of the oil and gas production in 2021.
The total daily oil production is 445,000 BOPD. This comprises 349,000 BOPD from Indonesia and 96,000 BOPD from operations outside of Indonesia.
Daily total gas production is 2615 MMSCFD. This comprises 2290 MMSCFD from Indonesia and 325 MMSCFD from operations outside of Indonesia.
Pertamina drilled 12 exploration and 350 development wells in 2021.
This article is adapted by Jamin Djuang – Chief Learning Officer of LDI Training – from information published by Pertamina and various other sources.
This has been a very surprising and great week for the oil industry.
The OPEC+ members – Organization of the Petroleum Exporting Countries and their Russia-led allies – held their meeting this week and decided not to increase oil production in April. As a result, oil prices and share prices of all major oil companies soared this week ending on 5 March 2021.
The price of Brent crude oil surged to $69.36 per barrel while the WTI crude oil closed higher also at $66.28 this week.
STOCK PRICES OF MAJOR OIL COMPANIES
All oil major companies saw huge gains in their stock prices this week.
Here are their closing prices and the weekly changes.
CHEVRON – $109.00 up 9%
EXXONMOBIL – $60.93 up 12.1%
CONOCOPHILLIPS – $58.34 up 12.2%
BP – $26.77 up 9.7%
ROYAL DUTCH SHELL – 18.13 EUR up 7.3%
TOTAL – 40.97 EUR up 6.7%
ENI – 10.06 EUR up 6.1%
The weekly US rig count increased to 403. The oil companies in the US added one rig last week, according to Baker Hughes Rig Counts.
The total global rig count continues its monthly gain. It increased by 87 rigs in the month of February 2021 to 1270. The total global rig count in January was 1183.
This weekly report is adapted by LDI Training from various sources of information.
The upstream oil and gas industry of Indonesia invested 10.21 billion US dollars and performed well in 2020 according to SKK Migas, the special task force in charge of upstream oil and gas activities of oil companies in Indonesia.
The oil and gas industry of Indonesia successfully met and even exceeded some of the 2020 targets that were set by the Indonesian government in the following key areas:
Reserve Replacement ratio (RRR).
Controlling the cost recovery
Revenue intake by the government
Completion of oil and gas projects
RESERVE REPLACEMENT RATIO
The reserve replacement ratio in 2020 is 101.6%. The oil industry added 705 MMBOE of reserve in 2020.
OIL AND GAS PRODUCTION
The average daily oil lifting in 2020 is 706,000 BOPD. This exceeded the government target of 705,000 BOPD.
However, daily gas production in 2020 is 5461 MMSCFD. This is below the government target of 5556 MMSCFD.
The amount of cost recovery in 2020 is US$ 8.12 billion which is in line with the government expectations.
OIL REVENUE TO GOVERNMENT
The oil industry contributed US$ 8.4 billion of revenues to the Indonesian government. This amount is 41% higher than the expected amount of US$5.86 billion.
COMPLETION OF EXPLORATION AND PRODUCTION PROJECTS
Fifteen oil and gas projects went on stream in 2020. These new projects added 9182 barrels of oil per day and 111 million SCF of gas per day.
3199 Km of 2D seismic and 1251 Km2 of 3D seismic surveys were completed in 2020.
SKK Migas was active and running in 2020 to keep the oil and gas exploration and production activities at a high level. Here are some of the key actions that SKK Migas undertook in 2020:
SKK Migas signed twenty-four PSC side letters and sixty-one letters of agreement (LoA).
The government reduced the prices of gas sold to domestic companies to stimulate economic growth.
Allowing oil and gas operators to delay topping up the Abandonment and Site Restoration fund.
Eliminating the costs to oil operators of using government assets in their exploration and production activities.
Allowing oil companies to accelerate asset appreciation.
SKK Migas and Chevron Pacific Indonesia signed the Heads of Agreement to ensure the continuity of a high level of activities such as well drilling and production optimization in the Rokan Block during the final phase of the PSC contract. Chevron will hand over the operatorship of The Rokan block to Pertamina when its production sharing contract expires in August 2021.
SKK Migas approved the Plan of Development (POD) submitted by Repsol for the development of the huge Kaliberau gas field having 445 billion SCF of gas reserve in the Sakakemang block. The total investment in this project is estimated at 359 million US dollars.
PERFORMANCE OF THE OIL AND GAS OPERATORS IN 2020
Here are the top nine oil and gas operators who exceeded their oil production targets in 2020.
Chevron Pacific Indonesia
Pertamina Hulu Mahakam
Pertamina Hulu Energi ONWJ
Pertamina Hulu Energi OSES
Petrochina International Jabung
Medco E & P Natuna
Pertamina Hulu Sanga Sanga
Medco E&P Rimau
JOB Pertamina – Medco Tomori Sulawesi
Here are the top nine oil and gas operators who exceeded their gas production targets in 2020.
Pertamina Hulu Mahakam
Eni Muara Bakau BV
JOB Pertamina – Medco Tomori Sulawesi
Premier Oil Indonesia
Petrochina International Jabung
Medco E & P Natuna
Kangean Energi Indonesia
Pearl Oil (Sebuku)
EXPLORATION AND PRODUCTION TARGETS FOR 2021
Being optimistic that Indonesia will meet the target of 1 million BOPD and 12 BSCFD of gas by 2030, SKK Migas is committed to keeping oil and gas production high in 2021. Here are its ambitious targets for oil and gas activities in 2021:
Daily oil production – 705,000 BOPD. This is the same target as in 2020.
The number of exploration wells – 43. This is a significant increase from 28, the actual number of exploration wells drilled in 2020.
The number of development wells – 616. This target is much higher compared with the 240 development wells drilled in 2020.
Number of workovers – 615
Number of well services – 26,431
2-D seismic survey – 3569 Km
3-D seismic survey – 1549 Km2
The Indonesian oil industry performed well in 2020. Mr. Dwi Soetjipto, the head of SKK Migas said: “The year 2020 was a difficult year for many oil operators due to the Covid 19 pandemic and the low oil prices. Nevertheless, the oil industry of Indonesia was able to meet several targets set by the government. Hopefully, this will help the country’s economy.”
This blog article is adapted from “Kinerja Hulu Migas Gemilang Sepanjang 2020” published by SKK Migas on 4 January 2021.
This article is adapted from SKK Migas news by Jamin Djuang – Chief Learning Officer of LDI Training.
Indonesia is the second-largest geothermal energy producer in the world after the USA. The total installed power generating capacity from the active 16 geothermal power plants in Indonesia is 2276 MW at the end of 2021.
Indonesia is the biggest contributor to the increase of installed geothermal power in the world in 2021.
Indonesia added a total of 133 MW of capacity in 2021: 45 MW from Unit II Sorik Marapi Geothermal Power Plant on 28 July 2021 and 98.4 MW from the Rantau Dedap Power plant on 26 December 2021.
The country plans to add 108 MW of capacity in 2022.
Located right on the long stretch of the ring of fire, Indonesian islands are endowed with rich geothermal resources. The total potential geothermal resources of Indonesia are estimated at 28,000 MW.
Although the geothermal potential is huge, its utilization rate is under 8%.
Here are the top ten largest geothermal plants in Indonesia in 2021.
The Kamojang Geothermal Plant
Operating since 1982, the 235 MW Kamojang plant is the first geothermal power plant in Indonesia. Located in the Garut area in West Java, it has been operating for 38 years.
The Dutch spotted the Kamojang geothermal potential more than one hundred years ago and drilled several wells in the area. In 1926 it successfully drilled the first steam producing well in Kamojang, also the first in Indonesia.
Later in I971, Pertamina Geothermal Energy (PGE) with cooperation from New Zealand began to develop the field followed by the construction of the Kamojang power plant, the first geothermal power plant in Indonesia.
The plant is operated by Pertamina Geothermal Energi.
The Salak Geothermal Power Plant
Producing 377 MW of power, the Salak plant is the largest geothermal power plant in Indonesia and is also one of the largest in the world.
Located at Gunung Salak in West Java, the Salak plant has been operating since 1994.
The Salak geothermal resources were initially explored and developed by Unocal. In 2005, the Salak geothermal assets were taken over by Chevron who eventually sold it to Star Energy in 2017.
The Darajat Geothermal Plant
The 270 MW Darajat geothermal plant, located at Garut in West Java, started its commercial operation in 1994 and is one of the oldest geothermal power plants in Indonesia.
The Darajat geothermal assets were initially explored and developed by Amoseas. The assets were later taken over by Chevron who eventually sold it to a consortium led by Star Energy in 2017.
The Darajat resource has two special characteristics. First, it is one of only a few dry steam fields in the world.
Secondly, the Darajat wells are highly productive. While the worldwide average capacity of a geothermal well is 5 to 10 MW, a Darajat well can produce 40 MW of power.
The Sarulla Geothermal Plant
The Sarulla geothermal power plant, with 330 MW capacity, is the second-largest geothermal plant in Indonesia and is also one of the largest geothermal plants in the world.
The Sarulla geothermal resources, located in North Sumatera, were initially discovered by Unocal. Unocal conducted extensive exploration in the Sarulla geothermal working area from 1993 to 1998. It drilled a total of 13 deep wells and proved the existence of 330 MW of commercial geothermal reserves for 30 years.
However, due to the Asian financial crisis in 1997, the Unocal proposed power plant was not constructed until after the project was taken over by Sarulla Operation Limited (SOL).
Sarulla Operation Limited completed the power plant in 2016. The company is a consortium consisting of Medco Power Indonesia, Pertamina Geothermal Energy, INPEX, Ormat International, Itochu Corporation, and Kyushu Electric Power.
The Muara Laboh Geothermal Plant
Completed in 2019, the 85 MW Muara Laboh geothermal plant is the newest plant among the ten largest geothermal power plants in Indonesia.
The Muara Laboh geothermal plant is located in West Sumatera and is operated by Supreme Energy Muara Laboh (SEML).
It took the company 12 years to complete the geothermal project at 587 million US dollars.
The operator of the project, PT Supreme Energy Muara Laboh (SEML), is a consortium consisting of PT Supreme Energy, ENGIE, and Sumitomo Corporation.
Having proven reserves of 200MW, the company is in negotiation with PLN, the national power company, to build a second power generation unit.
The Ulubelu Geothermal Plant
Operating since 2012 and located at Lampung in Sumatera, the 220 MW Ulubelu geothermal power plant is operated by Pertamina Geothermal Energy.
The combined 220 MW power comes from the four 55 MW power generation units.
The Lahendong Geothermal Plant
The 120 MW Lahendong geothermal plant is located in Tomohon in North Sulawesi. The Lahendong plant started to operate commercially in 2001 and Pertamina Geothermal Energy (PGE) is the operator.
Its combined 120 MW power is generated from the five 20 MW power generation units.
The Wayang Windu Geothermal Plant
Located in the Bandung area in West Java, the 227 MW Wayang Windu geothermal plant began its commercial operation in 1999.
Star Energy operates the Wayang Windu geothermal assets under a joint cooperation contract with Pertamina Geothermal Energi.
The Dieng Geothermal Plant
The 60 MW Dieng geothermal power plant started to operate in 1998. The Dieng plant is located in the Dieng area in Central Java and is operated by Geo Dipa Energi.
Geo Dipa Energi is currently working on the following projects in the Dieng work area:
Adding a small 10 MW power plant.
Developing a 55 MW Dieng-2 power plant (PLTP Dieng Unit 2)
Developing a 55 MW Dieng-3 power plant (PLTP Dieng Unit 3)
The Patuha Geothermal Plant
The 55 MW Patuha geothermal plant located at the Ciwidey area in West Java has been in operation since 2014.
Geo Dipa Energi as the operator is committed to drill 12 new wells beginning in 2021 and construct a second 55 MW power plant. Its long-term plan is to increase the Patuha power generation capacity to 400 MW.
Other Geothermal Plants in Indonesia
Sixteen geothermal power plants are operating in Indonesia currently. Besides the above top ten largest plants, here are two other geothermal plants that are worth mentioning.
The Lumut Balai Geothermal Plant
The 55 MW Lumut Balai geothermal plant, located at Muara Enim in South Sumatera, started to operate commercially in 2019.
Pertamina Geothermal Energi operates the Lumut Balai assets and the company is finalizing the construction the second 55 MW power station. This Lumut Balai #2 Station will come online by the end of 2022.
The Sorik Marapi Geothermal Plant
The Sorik Marapi geothermal power plant located in Mandailing Natal in North Sumatera has a total installed capacity of 90 MW.
Its first 45 MW unit came online in 2019 and the second 45 MW unit was inaugurated on 28 July 2021.
The Sorik Marapi geothermal plant was developed by ORKA Energy and operated by PT Sorik Marapi Geothermal Power.
The company is constructing its third power station. This Sorik Marapi #3 55MW Station will come online in 2022.
The Rantau Dedap Geothermal Plant
The Rantau Dedap geothermal power plant, located in South Sumatera, is the latest geothermal power plant that came online in Indonesia in 2021. Currently, it consists of two power stations, Unit 1 and Unit 2 having a total installed capacity of 98.5 MW.
The power plant is operated by PT Supreme Energy Rantau Dedap (SERD), a consortium consisting of Supreme Energy, Marubeni, ENGIE, and Tohoku Electric Company.
Here are the timelines of the Rantau Dedap geothermal project:
2010 – The concession for the Rantau Dedap was awarded to Supreme Energy.
2011 – Geoscientific exploration began.
2014 – Exploration drilling began.
2015 – A total of 6 exploration wells were completed by 2015.
2016 – The company confirmed the 92 MW of proven reserve capacity.
2018 – Power plant construction began.
2021 – Completed the Unit 1 and Unit 2 power stations.
The 49.25 MW Unit 1 station was successfully synchronized to PLN’s power grid on 5 October 2021. PLN – Perusahaan Listrik Negara – is the national electricity company of Indonesia.
The Rantau Dedap power plant began its commercial operation on 26 December 2021.
PT Supreme Energy Rantau Dedap plans to further develop the geothermal potential in the Rantau Dedap geothermal work area with a total development target of 240 MW.
Geothermal is Rising in Indonesia
The list of the top largest power plants in Indonesia will likely change in 2022 as several new power plants will be completed in near future.
The Indonesian government is very keen to develop its vast geothermal resources to increase the contribution of renewable energy in its energy mix. Its targets are to increase the geothermal power generation capacity to 7500 MW by 2025 and 9300 MW by 2035.
To meet these targets, the government will provide funds to help companies in their exploration drillings, provide tax holidays, and remove certain taxes.
With a total of 265 potential sites for geothermal plants located across the country, the utilization of the geothermal resources should continue to increase long into the future in Indonesia.
Written by Jamin Djuang – Chief Learning Officer of LDI Training and author of The Story of Oil and Gas: How Oil and Gas Are Explored, Drilled, and Produced
This year, Medco Energi is celebrating its forty years of continuing successes and presence as one of the leading energy companies in Indonesia and South East Asia.
Medco Energi International became a public company in 1994, and today it operates in eight countries.
It has interests in oil and gas exploration and production, geothermal power generation, gas distribution and trading, and mining.
The Beginning of Medco
Medco Energi has come a long way in a short time since it started as an oil drilling service company in 1980, Meta Epsi Pribumi Drilling Company (MEDCO).
Founded by Mr. Arifin Panigoro, Medco Energi was a visionary and a trailblazer ever since its beginning.
The Acquisition of Stanvac Indonesia
The first breaks that made Medco became big and successful were the acquisition of Stanvac’s oil and gas assets in South Sumatera in 1995, and the following discovery of the big oil fields in Kaji and Semoga in the Rimau Block, in South Sumatera.
Stanvac Indonesia, set up by Standard Oil of New Jersey in 1912, was one of the oldest and biggest oil companies in Indonesia during the Dutch colonial era.
The Acquisition of ConocoPhillip’s Interest in West Natuna Sea Block B PSC
The Acquisition of ConocoPhillip’s Interest in West Natuna Sea Block B
Medco Energi further expanded in 2016 when it purchased ConocoPhillips’s 40% interest in the West Natuna Sea Block B and took over the operatorship of the block.
This acquisition added substantial gas and liquids reserves and increased Medco Energi’s daily production by over 35%.
The block is in approximately 300 feet of water and had 11 offshore platforms, four producing subsea fields, and one FPSO – the Belanak FPSO – in addition to two dedicated floating storage and offloading vessels.
The Belanak FPSO was described as one of the most complex FPSO in the world. It was the first offshore liquefied petroleum gas (LPG) facility on a floating vessel in the Asia Pacific region when it was commissioned in 2004.
The fields include the Belanak field, South Belut field, Hiu field, Kerisi field, North Belut field and Bawal field.
The produced natural gas is sold to Singapore and Malaysia through a 654 KM long 28 inch gas pipeline.
Medco Energi also assumed the operatorship of the Onshore Receiving Facility in Singapore following the acquisition.
Acquisition of Ophir Energy
Medco Energi Internasional continued to expand by acquiring Ophir Energy, a London-based independent in 2019.
The acquisition of Ophir Energy increased Medco Energi’s daily oil and gas production by 29% to 110,000 BOE per day.
By taking over the operatorship of Ophir Energy’s offshore Bualuang field in Thailand, Medco Energi became a leading regional oil and gas player in South East Asia.
Acquisition of Corridor PSC and Transasia Pipeline
On March 3, 2022, Medco Energi acquired the entire remaining assets of ConocoPhillips in Indonesia..
Through this acquisition, Medco Energi is now the operator of the Corridor block with 54% interest and has 35% ownership of Transasia Pipeline Company.
The Corridor PSC has two producing oil fields and seven producing gas fields located onshore South Sumatra, Indonesia, adjacent to MedcoEnergi’s existing operations in South Sumatra. The Corridor is the second-largest gas-producing block in Indonesia.
Through Transasia, MedcoEnergi now owns a minority interest in the gas pipeline network supplying Central Sumatera, Batam, and Singapore customers.
With this latest acquisition, Medco Energi is now one of the largest oil and gas operators in Indonesia.
Besides acquiring producing assets, Medco Energi is also active in exploring new oil and gas reserves.
Its 2020 exploration drilling campaign in the South Natuna Sea Block B was 100% successful. It tested hydrocarbon in all the four exploration wells it drilled. The wells are Bronang-2, Kaci-2, Terubuk-5, and West Belut-1.
Medco Energi is planning to develop these fields.
As Medco Energi celebrates its more than 40 years of progress, with its solid management team, it certainly will continue to march toward an even brighter future.
Top Management Team of Medco Energi
Here is the top management team of Medco Energi.
Muhammad Lutfi – President Commissioner
Hilmi Panigoro – President Director
Roberto Lorato – Chief Executive Officer
Anthony R Mathias – Chief Financial Officer
Ronald Gunawan – Chief Operating Officer
Amri Siahaan – Chief Human Capital and Business Support Officer
Myrta Sri Utami – VP Corporate Planning & IR
Siendy K Wisandana – Head of Legal Counsel and Secretary
As a final note, Dr. Arifin Panigoro, the man who started it all and the founder of Medco group of companies died on 27 February 2022 at age of 76.
Since the early 1900s, with oil discoveries in Sumatera in 1885, Java in 1887, and Kalimantan in 1891, Indonesia has been recognized as an important oil-producing country outside America.
By 1900 there were already 18 oil companies operating in Indonesia. It is interesting to note that only companies registered in Nederland and managed by the Dutch could operate in Indonesia at that time. The reason for this was up until World War II, Indonesia was under the administration of the Netherlands East Indies (NEI).
These old Dutch oil companies played important roles in putting Indonesia on the world map as a significant producer of crude oil and fuels. They discovered and developed many oilfields in Indonesia, and even built refineries in Sumatera, Java, and Borneo. By 1938, oil production had reached 140,000 barrels per day.
By 1945, the year when Indonesia declared its independence, due to acquisitions and mergers, the number of oil companies had reduced to just four: BPM (Bataafsche Petroleum Maatschappij), NIAM (Nederlands Indische Aardolie Maatschappij), STANVAC, and CALTEX.
Stanvac and Caltex which were owned by their American parent companies started as Dutch-registered companies.
After 1965, when Pertamina acquired BPM, all the oil companies with Dutch names no longer existed. Nevertheless, their names appeared in many old and new articles and are often cited in research papers.
Since the names of the old Dutch oil companies in Indonesia consisted of long Dutch words, they were often written in their acronyms.
Here is the glossary of the acronyms of some of the old Dutch oil companies that operated in Indonesia in the past.
The first oil exploration in Indonesia started not long after Colonel Drake successfully drilled the first oil discovery well in Pennsylvania in the United States in 1859.
By 1869, Dutch businessmen in Indonesia, known as the Netherlands East Indies at that time, had noticed and recorded 53 oil seepage locations in Sumatera, Java, and Kalimantan.
Then the first oil well drilling in Indonesia took place in 1871 in West Java.
However, commercial discoveries were made only several years later when a Dutch businessman drilled successful exploration wells in Pangkalan Brandan in North Sumatera in 1885 and Sanga-Sanga in East Kalimantan in 1892.
These two discoveries caught the attention of the world and put Indonesia on the map as one of the countries with interesting oil potentials.
By 1900 there were already 18 oil companies searching for oil in the Netherlands East Indies (NEI). All these companies were either Dutch companies or non-Dutch companies registered in Nederland. The high level of activities resulted in significant oil discoveries in the early 1900s.
Following the oil discoveries, refineries were built in Pangkalan Brandan in North Sumatera in 1892, Sungei Gerong in South Sumatera in 1926, Balikpapan in East Kalimantan in 1922. By 1940, there were already seven refineries in NEI: three in Sumatera, three in Java, and one in Kalimantan.
In 1938, the daily crude oil production was about 140,000 BOPD and in 1953 it was about 190,000 BOPD.
The high level of oil production and refining activities from 1900 to 1940 made Indonesia well-known as one of the world’s significant crude oil producers and refined product suppliers at that time. In fact, Indonesia was so well-known for its oil it became involved in World War II.
Recognized as a significant oil producer, Indonesia was invited to become a member of OPEC 1962.
The three oil companies that produced about 90% of all the petroleum in Indonesia during the Dutch colonial period are:
BPM – Bataafsche Petroleum Maatschappij
STANVAC – Standard Vacuum Oil Company
Here are the amazing stories of these three big oil companies operating in Indonesia before 1945.
BPM is Bataafsche Petroleum Maatschappij, also called the Batavian Oil Company. Batavia, which is Jakarta today, was the center of the NEI government.
BPM was established in 1907 by KNPM (Koninklijke Nederlandsche Petroleum Maatschappij) also known as Royal Dutch Petroleum Company and Shell Trading and Transport Company to explore and produce oil in the Netherlands East Indies.
Royal Dutch Petroleum Company owned 60% and Shell owned 40% of BPM.
Before BPM was set up, there were already as many as 18 oil companies operating in the Netherlands East Indies (NEI) from North Sumatera, Java, Borneo, and all the way to Papua.
BPM quickly took over almost all of these companies and dominated the oil industry in Indonesia. By 1920, it had controlled more than 95% of crude oil production in Indonesia.
In 1921, as the government of the Netherlands East Indies wanted to take part in the booming oil business in Indonesia, NEI and BPM formed another company called NIAM (Nederlands Indische Aardolie Maatschappij).
Many big changes took place in the oil industry after Indonesia declared its independence in 1945. The first big change was the takeover by the government of Indonesia the NEI’s 50% ownership in NIAM.
This marked the beginning of an Indonesian government-owned oil company. It also started a working relationship between BPM and the government of Indonesia. With this relationship, BPM managed to extend its activities in Indonesia until 1965.
In 1965, BPM sold all its assets in Indonesia to the Indonesian state-owned company PN Permina for US$110 Million. Permina later became Pertamina.
BPM operations in Indonesia were extensive. They stretched from the western part of Indonesia to the eastern part of Indonesia.
Here are the operations of BPM in various parts of Indonesia.
BPM In Borneo
In 1907, right after it was formed, BPM acquired the oil fields and refinery in Balikpapan from Mathilda company. It also acquired the oil fields in Sanga Sanga and Tarakan which had been discovered previously by KNPM (Koninklijke Nederlandsche Petroleum Maatschappij).
BPM expanded its exploration and production aggressively in East Borneo and continued to discover several other fields in these areas.
On the small island of Tarakan, BPM drilled 700 oil wells and built a refinery.
Production continued to increase and in the 1920s the Tarakan wells produced about 18,000 BOPD, a third of the total oil production in the whole Dutch East Indies.
BPM in North Sumatera
BPM acquired from KNPM the oil fields and the refinery located at Pangkalan Brandan. BPM also took over the operations of the oil tanking and the oil export facilities at Pangkalan Susu. Pangkalan Susu was the first oil-exporting port in Indonesia.
BPM in Java
In Java, BPM acquired the oil assets of DPM (Doordsche Petroleum Maatschappij), a Dutch oil company established by Adriaan Stoop in 1887.
DPM had discovered and operated the Kruka Field and the Djabakota Field near Surabaya in East Java. DPM also had built the oil refinery in Wonokromo. Completed in 1893, this was the first oil refinery in Indonesia.
By acquiring DPM, BPM also became the owner of some thirty oil fields in East Java including another refinery located in Cepu which was built in 1894.
BPM In South Sumatera
In South Sumatera, BPM took over SPPM (Sumatera Palembang Petroleum Maatschappij). SPPM had been operating the oil fields in its concessions in Banyuasin and Jambi.
BPM also acquired the oil assets of MEPM (Muara Enim Petroleum Maatschappij). MEPM had discovered the Muara Enim field and built the Plaju Refinery.
BPM In Irian Jaya
In 1935 BPM expanded its search for oil into Irian Jaya. For this venture, along with other partners, BPM formed a joint venture company named NNGPM (Nederlandsche Nieuw Guinea Petroleum Maatschappij) with exploration rights for 25 years.
By 1938 they had discovered the Klamono oil field. followed by Wasian, Mogoi, and Sele fields.
However, for commercial reasons, these fields were not developed.
STANVAC – Standard Vacuum Oil Company – started as NKPM (Nederlandsche Koloniale Petroleum Maatschappij) in 1912. NKPM was set up in Nederland by the American company Standard Oil of New Jersey so it could explore for oil in Indonesia.
Since Indonesia was under the control of the Netherlands East Indies at that time, Jersey Standards had to set up NKPM as a Dutch-registered and Dutch-managed company with headquarters located in The Hague.
NKPM began to make exploration in Java and South Sumatera in 1914.
It was in South Sumatera NKPM found its liquid gold. Operating from the city of Palembang, it discovered the Petak field in 1914, the Trembule field, and the huge Talang Akar field in 1921. These discoveries prompted NKPM to construct the famous Sungai Gerong oil refinery.
In 1922 NKPM changed its name to SVPM (Standard-Vacuum Petroleum Maatschappij).
It also constructed the 130 Km long pipeline from Pendopo area to Sungai Gerong to bring the crude oil from the prolific Talang Akar field to the refinery.
The Sungai Gerong refinery began operating in 1926 and became the largest and important oil refinery in South East Asia.
It was so important that the refinery was occupied by Japanese forces from 1942 to 1945 during World War II.
To meet the increasing demands for petroleum products in Africa and the Asia Pacific, Standard Oil Company of New Jersey and SOCONY (Standard Oil Company of New York) jointly created STANVAC (Standard Vacuum Oil Company) in 1933.
This was a synergistic partnership as Standard Oil Company of New Jersey had the oil production capacity and SONONY had the marketing facility.
The newly created Stanvac in the Netherlands East Indies consisted of three companies: Standard Vacuum Petroleum Maatschappij (SVPM), the Standard Vacuum Sales Company (SVSC), and the Standard Vacuum Tankvaart Maatschappij (SVTM).
Stanvac took over all the assets of SVPM in Indonesia and became a full-fledged oil company involved in oil exploration and production, refining, transportation, and distribution in more than 50 countries.
However, Stanvac continued to operate under its Dutch company name – SVPM – in the NEI.
Stanvac produced oil from many fields in South Sumatera. The notable ones were Talang Akar, Djirak, Benakat, Radja fields.
In 1934, Stanvac expanded its operations to Central Sumatera. Here it discovered and developed the well-known Lirik field and later the Binio field.
Things began to change after World War II and the declaration of independence of Indonesia.
It was after the declaration of independence by Indonesia in 1945, to distance itself from its Dutch connection, Stanvac began calling itself Stanvac Indonesia as its company name to show its American origin.
In so doing, Stanvac was able to keep its assets and continue to operate in the newly independent Indonesia.
In 1960, as Indonesia wanted to have more control of the oil operation and business, it introduced the 1960 Oil Law which stated that all foreign oil companies must operate as a contractor for the Indonesian government.
On 24 September 1963, Stanvac signed the “Contract of Work” agreement with Indonesia’s Pertambangan Minjak Nasional (Permina).
The contract allowed Stanvac to continue to have full control of its oil exploration and production operations in Indonesia. Under this agreement, Stanvac must sell its refinery within ten to fifteen years.
However, Stanvac had to sell its Sungai Gerong refinery to Pertamina in 1969.
Stanvac Indonesia continued to operate its oil fields until finally, it left Indonesia in 1995 when it sold all its assets to Medco Energi for 88 million USD.
CALTEX was established in 1936 by Standard of California and Texaco to explore and produce oil in Indonesia and to expand its oil business in the Asia Pacific.
Earlier in 1924, The Standard of California had sent its team of geologists to Indonesia.
To operate in the Netherlands East Indies at that time, Caltex must obtain oil concessions from the government of NEI (Nederlands East India) who was the ruler of Indonesia at that time. To do so, in 1930, Caltex established NPPM (Nederlandsche Pacific Petroleum Maatschappij), a Nederland registered company with its headquarters located in The Hague. Also, the company must be run by Dutch nationals.
In the same year, Caltex received its first oil concession in the Rimba area which is now known as the Rokan Block in Central Sumatera.
Soon after that Caltex began to find oil, but it was in 1941 that Caltex discovered the huge Duri field. Due to the high pour point of its low gravity crude oil, it was necessary to use steam-flood to drive out the oil. Due to the success of the steam flood method, the Duri field became known as one of the largest steam-flood projects in the world. In spite of the huge challenges to produce the field, it has produced more than 2.64 billion barrels of oil so far.
Several years later Caltex went on to discover another giant oil field, The Minas field.
The story of the Minas field discovery is very interesting. In 1940, at the beginning of World War II, Caltex had started the drilling of its exploration well in the Minas area. However, before the drilling was completed, Caltex had to abandon the drilling as the Japanese army was coming to occupy the area and to take over the oil facilities.
The Japanese army engineers resumed the drilling of the well in 1943 and discovered oil when it drilled down to 2600 feet deep.
At the end of the war, Caltex regained control of its oil assets and continued to investigate the Minas field. After drilling several additional wells, Caltex confirmed the discovery of the huge Minas oil field.
Caltex went on to discover many smaller oil fields in its concession area.
By the late 1950s, Caltex became one of the largest oil producers in Indonesia. At its peak in 1973, Caltex produced about 1 million BOPD from the Duri, the Minas, and about 80 smaller oil fields. Caltex holds the record of having the highest daily crude oil production rate in Indonesia.
Caltex completed the construction of a crude oil export terminal in Dumai in 1958.
Caltex signed a work contract agreement with Indonesia in 1961 giving it the right to continue to operate the Rokan block until 2001. Later on, Caltex managed to obtain a work contract extension to operate the block for another 20 years until 2021.
The two owners of CALTEX, Chevron, and Texaco merged in 2001 to become ChevronTexaco Corporation. Later on, in 2005, ChevronTexaco Corporation dropped the name Texaco and renamed the company as Chevron Corporation.
Following the name change of its parent company, Caltex in Indonesia which was initially incorporated as PT Caltex Pacific Indonesia changed its name to PT Chevron Pacific Indonesia.
By 2008, Chevron Pacific Indonesia had produced 11 billion barrels of crude oil from the extremely prolific Rokan block.
Although the Rokan block has been producing oil for more than 80 years, it still has 2 billion barrels of estimated producible reserves. It is considered as an important block in Indonesia’s ambition to increase the daily oil production in Indonesia to one million barrels by 2030.
Although the name Caltex disappeared in Indonesia after the name change, the Caltex petroleum brand is still alive in many countries in the Asia Pacific.
These three companies of the past were great companies to work for. Since most of their oilfields were located in the middle of a jungle, the companies provided good and well-rounded facilities – schools, clinics, cafeterias, places for worship, sports, and entertainment – to their employees and their families.
Many people and children of those who had worked for these companies have fond and colorful memories of the companies.
To me, the one that is the most interesting is BPM.
The joint venture of Royal Dutch Petroleum Company and Shell Trading and Transport Company that formed BPM – Bataafsche Petroleum Maatschappij – in Indonesia in 1907 sowed the seed that eventually grew into the current giant Shell Oil Company.
Also, BPM had a role in the rise of Pertamina when Pertamina took over all the assets of BPM in 1965.
The Indonesia government will drill geothermal exploration wells in 20 geothermal work areas in Indonesia beginning in 2020 until 2024, according to Ida Nuryatin Finahari, Director of Geothermal in the Ministry of Energy and Mineral Resources.
The purpose of this initiative is to gather information on the geothermal potentials in each work area and to pass this information to potential investors.
The Indonesia government hopes this four year project will stimulate the interests of investors and accelerate the development of geothermal energy in Indonesia.
Here are the twenty geothermal work area where the government of Indonesia will drill exploration wells.
Eighty years ago, CALTEX discovered the huge Duri oil field in the Rokan block in Riau, Sumatera.
Oil was found at a shallow depth of 400 feet when CALTEX began drilling its exploration wells in 1941. However, the exploration drilling was interrupted due to the onset of the World War 2. After the war ended, CALTEX managed to obtain the approval from the newly formed government of Indonesia to operate in the Rokan block under a work contract scheme. Eventually, oil production from the Duri field began in February 1954.
The giant Duri field – 10 km wide and 18 km long – is one of the many oil fields discovered in the Rokan block. Minas is another giant oil field discovered in this block.
Oil production peaked at 65,000 BOPD in the 1960s.
Due to the high viscosity of the low gravity oil, to enhance the production, the steam injection was introduced in 1985.
The Duri steam flood project was so successful that it became one of the largest and the best steam floods in the world.
Thanks to the successful steam injection, Duri oil production increased significantly to 185,000 BOPD.
After 30 years of the steam flood, the production had declined to about 50,000 BOPD by 2017.
With more than 2.6 billion barrels of cumulative oil produced, the giant Duri field is still producing today.
Chevron will hand over the operatorship of the Duri field and the Rokan block to Pertamina in August 2021.