A pumping well of Pertamina. Photo courtesy of Pertamina
Here is the monthly summary of oil and gas exploration and production activities in Indonesia in May 2022, according to SKK Migas.
· Daily crude oil production: 616,800 BOPD · Daily gas production: 5321 MMSCFD · Daily oil and gas production: 1,567,000 BOEPD · Exploration wells drilled YTD: 11 · Development wells drilled YTD: 291 · 2-D seismic survey completed YTD: 559 KM · 3-D seismic survey completed YTD: 269 KM2 · Amount of investment YTD: USD 3.9 billion · Number of Work Areas: 170
Here are other recent happenings in the oil patch of Indonesia.
· Pertamina recorded $2.046 billion corporate profit in 2021. This almost doubles the profit it made in 2020. · Pertamina EP has completed the construction of the Beringin A gathering station in Muara Enim in South Sumatera. The gathering station is designed to increase the capacity of the Prabumulih field to handle an additional 15 million MMSCFD of gas and 382 BPD of condensate. · Pertamina Hulu Energy has made hydrocarbon discovery from its exploration well GQX-1 in the Offshore North West Java (ONWJ) work area. · Gas production from the newly completed JML1 platform in the Jumelai field operated by Pertamina Hulu Mahakam had come on stream. The gas is piped to the production facility of the Senipah-Peciko-South Mahakam field. The Jumelai project is expected to produce 45 MMSCFD of gas and 710 BPD of condensate. · PT BSP (Bumi Siak Pusako) has started drilling its exploration well Nuri-1X in the CPP (Corridor Plain and Pekanbaru) Block in Riau. The company plans to drill 15 development wells and two exploration wells in 2022. · Pertamina Hulu Energy has started drilling the exploration well NSO-R2 in the North Sumatera Offshore work area. · Gas production from the new platform WPS-3 of Pertamina Hulu Mahakam came on stream on 10 June 2022. The installation of the WPS-3 platform and the subsequent drilling of the development wells are part of the JSN (Jumelai, North Sisi, and North Nubi) project. This platform is designed to handle 45 MMSCFD of gas.
This article is curated 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 2356 MW as of December 2022.
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 added a total of 80 MW of geothermal power in 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 2022.
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 Sumatra, 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 Sorik Marapi Geothermal Plant
The Sorik Marapi geothermal power plant located in Mandailing Natal in North Sumatra has a total installed capacity of 140 MW. as of October 6, 2022.
The Sorik Marapi geothermal plant was developed by ORKA Energy and operated by PT Sorik Marapi Geothermal Power.
The Sorik Marapi 45 MW Unit 1 power station came online in 2019. It was completed in a record time of three years, with the first drilling starting in October 2016 and the completion of the power station in October 2019.
The second 45 MW unit was inaugurated on 28 July 2021.
Its newest power station, the 50 MW Sorik Marapi Unit 3 station came online on October 6, 2022.
The company has a target to complete 50 MW Unit 4 and 50 MW Unit 5 power stations in 2023 and 2024 respectively to bring up its total eventual power generation capacity to 240 MW.
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 Sumatra 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 its six 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 drilling 12 new wells beginning in 2021 and constructing a second 55 MW power plant. Its long-term plan is to increase the Patuha power generation capacity to 400 MW.
The Lumut Balai Geothermal Plant
The 55 MW Unit 1 station of the Lumut Balai geothermal plant, located at Muara Enim in South Sumatra, started to operate commercially in 2019.
Pertamina Geothermal Energy as the operator of the Lumut Balai geothermal work area aiming to bring the total capacity of the power plant to 220 MW has started the project to build a second 55 MW power station.
Pertamina Geothermal Energy has awarded the Engineering, Procurement, Construction, and Commissioning (EPCC) contract to the Mitsubishi Corporation Consortium to construct the 55-MW Lumut Balai Unit 2 Geothermal Power Plant and the corresponding Fluid Collection and Reinjection System.
The Rantau Dedap Geothermal Plant
The Rantau Dedap geothermal power plant, located in South Sumatra, 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 for 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 Unit 2 station 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
Sixteen geothermal power plants are operating in Indonesia currently. The list of the top largest power plants in Indonesia will likely change in 2023 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 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
From top left clockwise: The tension leg platform of West Seno (TLP-A), a drilling support vessel, and the floating production unit (FPU).
Discovered by Unocal in 1998, the West Seno field, lying in water depths of about 3200 feet, is the first deepwater oil field in Indonesia.
Located in the Strait of Makassar, the West Seno field is about 50 km away from the giant Attaka field and 60 km from the Santan terminal in East Kalimantan.
The oil and gas are produced through a tension leg platform (TLP) which is also the first of its kind in Indonesia.
The floating topside of the tension leg platform is attached to the seafloor by four 3200 feet long tendons having a diameter of 26 inches and a wall thickness of 1.036 inches.
Currently, all the subsea wells are produced from platform TLP-A which can accommodate 28 wells. Unocal originally had planned to build two tension leg platforms.
Oil production from the West Seno wells began in 2003 and currently, they are producing about 1200 BOPD. The fluids from the subsea wells are initially separated into oil and gas on the FPU (Floating Production Unit).
The separated oil and gas are then transmitted via two 12-inch diameter and 60 km long pipelines to the onshore facilities at Santan for final handling and storage.
One of the oil production challenges of West Seno is handling the difficult-to-break emulsions. The emulsions are hard to break due to the presence of certain chemicals in the fluid, the decreasing fluid temperature as it rises to the surface, and the motion of the floating platform.
The West Seno offshore production facilities also handle the production from the nearby Bangka field. Bangka field produces about 1000 barrels of condensate daily and 40 MMSCF of gas per day.
The development of the West Seno field was made possible by having a favorable PSC profit splits of 35 percent instead of the regular 15 percent for shelf developments.
Fifty years ago, Union Oil of California (UNOCAL) along with its partner, INPEX, discovered the giant offshore oil field Attaka in East Kalimantan.
General Soeharto, the president of Indonesia at that time, then inaugurated the Attaka field and the Santan terminal on 22 January 1973.
In the early days of Attaka and the Santan terminal, there were many workers from the US and UK. Over time, they were gradually replaced by Indonesian workers.
Unocal operated the oil field for 25 years from its East Kalimantan headquarters located in Balikpapan. The Attaka field was subsequently acquired and operated by Chevron, and then by Pertamina Hulu Kalimantan Timur beginning on 25 October 2018.
At 50 years old, the field is still producing today.
Thousands of oil people – expatriates from many nations and Indonesians from every region – have visited and worked in the offshore facilities and the onshore Santan terminal including me.
I worked in the Attaka field as “Production Foreman” in 1980. I hope you like this snippet of the history of Attaka and the Santan terminal.
SKK Migas – Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi – is a special task force that implements the production sharing contracts, develops the oil and gas upstream business and supervises the activities of the production sharing contractors in Indonesia.
SKK Migas is an institution created by the government of Indonesia based on the presidential regulation “Perpres Nomor 9 Tahun 2013 on the development and management of upstream oil and gas activities”.
SKK Migas is tasked to manage and supervise the upstream oil and gas activities – exploration, drilling, field development, and production – based on the production sharing contract system. It is established with the mission to ensure the exploration and production of the oil and gas will benefit the country and the people of Indonesia.
Here are the functions of SKK Migas:
Give considerations and recommendations to the Minister of Energy and Mineral Resources of Indonesia regarding the preparations and tenders of oil and gas work areas
Sign production sharing contracts
Study the development plan of a new oil and gas field in a work area, and submit the development proposal of the production sharing contractor for approval by the Minister of Energy and Mineral Resources
Give approval on the field development plan submitted by production sharing contractors
Approve the work program and budget of production sharing contractors
Monitor the operation and progress made by production sharing contractors and submit reports to the Minister of Energy and Mineral Resources
Appoint sellers of the produced oil and gas that will benefit the country.
These functions were originally carried out by BPPKA, a department under Pertamina, when the production sharing contract system was introduced in 1966. BPPKA (Badan Pembinaan Pengusahaan Kontraktor Asing) was later replaced by BP Migas. BP Migas later became SKK Migas in 2013.
To best serve and support the activities of oil operators around the country, SKK Migas has five field offices. They are:
SKK Migas Sumatera Bagian Utara located in Pekanbaru
SKK Migas Sumatera Bagian Selatan located in Palembang
SKK Migas Kalimantan and Sulawesi located in Balikpapan
SKK Migas Jawa, Bali, Madura dan Nusa Tenggara located in Surabaya
SKK Migas Wilayah Papua dan Maluku located in Sorong
The current head of SKK Migas is Mr. Dwi Soetjipto. Its head office is located at Wisma Mulia, Jalan Gatot Subroto Kav. 42, Jakarta, Indonesia.
The city of Balikpapan – Photo courtesy of Uut Minhudan
Balikpapan, located in East Kalimantan, is the most well known and interesting oil town in Indonesia, and possibly in the world. It is at the center of oil and gas exploration and production activities that have been taking place in East Kalimantan since 1897 when the first oil well was drilled in Balikpapan. It is also the battleground of two fierce battles during World War II. It is set to become even more well known with the announcement of the relocation of the capital city of Indonesia from Jakarta to East Kalimantan.
Here are the interesting facts about Balikpapan.
The First Oil Discovery At Balikpapan
Oil was discovered in Balikpapan in 1897 when Jacobus Hubertus Menten, a Dutch mining engineer observed oil seepages in the area. With the help from Sir Marcus Samuel from Shell Transport and Trading Ltd, they drilled the famous Well Mathilda B-1 on 10 February 1897. The well was drilled to 222 Meter and it flowed initially at 184 barrels per day. This oil discovery in Balikpapan took place 38 years after Sir Edwin Drake drilled the world’s first oil well in America.
This picture shows the Mathilda B-1, the first well drilled in Balikpapan. The picture was taken by Chaz Tumbelaka.
With the discovery, Jacobus Hubertus Menten and Sir Marcus Samuel formed Nederlandsch Indisch Industrie en Handel Maatschappij (NIIHM), and it continued to discover other oil fields away from Balikpapan. 10 February 1897 is considered the birth date of Balikpapan.
The Balikpapan Refinery
To process the crude oil from the surrounding area and to meet the needs for fuel, the oil refinery of Balikpapan was completed in 1922 by BPM (Bataafsche Petroleum Maatschappij) which was a subsidiary of Royal Dutch Shell. The Balikpapan refinery was damaged in 1942 when the Japanese army invaded Balikpapan. The refinery was controlled by the Japanese army in 1942-1945. BPM regained control of the refinery after the Allied forces ended the Japanese occupation of Balikpapan in 1945.
Several years later, Pertamina gained control of the refinery in 1949. The refinery has been expanded and upgraded several times to meet the increasing demand for fuel in the eastern part of Indonesia.
As one of the largest refineries in Indonesia, it is set to become even bigger. It is currently undergoing a large 4-billion-dollar expansion which will increase its processing capacity from 260,000 barrels per day to 360,000 barrels per day when it is completed in 2021. The refinery will have the capability to produce high-quality Euro V standard fuels.
The Discovery of Giant Oil and Gas Fields
Balikpapan experienced its biggest boom when several large international oil companies came to town after the production sharing contract scheme was introduced by Indonesia in 1966.
Balikpapan was the base of Union Oil of California (Unocal), Total and Roy M. Huffington Incorporated (Huffco) during their exploration and production operations in East Kalimantan where they discovered several giant oil and gas fields.
Pertamina has a huge presence in Balikpapan since 1949 when it took over the oilfields and the refinery which were previously operated by BPM (Bataafsche Petroleum Maatschappij), a subsidiary of Royal Dutch Shell.
Operated from Balikpapan, Unocal in partnership with Japex discovered the giant offshore oil field of Attaka in 1970. It also discovered the offshore Sepinggan field and the Yakin field both of which are clearly visible from the hills at Balikpapan. In 1996, Unocal discovered and developed the West Seno field which is the first deepwater oil field in Indonesia.
Total with its partner, Inpex, acquired the Mahakam Block in 1966. They discovered several giant offshore oil and gas fields: Handil, Peciko, Tambora, Bekapai, South Mahakam, Sisi-Nubi, and Tunu.
Huffco discovered the giant onshore Badak gas field in 1970 in East Kalimantan. The discovery of the giant Badak gas field had a huge influence on the course of oil and gas development in East Kalimantan. It prompted Huffco and Pertamina of Indonesia to build an LNG plant making it possible to export the gas.
Besides the Badak field, Huffco subsequently discovered the Nilam, Pamaguan, Semberah, Mutiara, Beras, and Lempake fields.
Huffco later became known as VICO Indonesia (Virginia Indonesia Company) in 1990 after Mr. Roy M. Huffinton sold the company.
After the introduction of the production sharing contract scheme (PSC) in 1966, and with the discovery of several giant oil and fields in East Kalimantan and in other parts of Indonesia, crude oil production in Indonesia increased from 500,000 BOPD to 1,650,000 BOPD at its peak in 1977.
The Badak LNG Plant in Bontang
The LNG plant known as the Badak LNG was completed in 1977. Located in Bontang, besides processing the gas produced by Huffco from the Badak field, the Badak LNG plant also processes gas produced from the fields operated by Unocal and Total located in East Kalimantan. Up until the completion of the LNG plant, most of the associated gas produced by Unocal and Total were flared.
The Badak LNG plant initially comprised of two trains. Over the years, with new field discoveries, six additional trains were constructed. With 22.5 million tons per year LNG production capacity, it is one of the largest LNG plants in the world.
As of 16 September 2019, Badak LNG has delivered 9445 LNG cargoes to countries such as Japan, Taiwan, Korea, China, the USA, Russia, and India.
The Fierce Battlefield during World War II Twice
Being rich in oil and having a refinery, Balikpapan was so vital that it became a battlefield twice during World War II.
The Battle of Balikpapan in 1942
During World War II, in order to control the supply of fuel, Japan invaded Balikpapan in 1942. The Dutch garrison resisted the invasion but eventually was defeated by the much bigger Japanese forces. The refinery was partially destroyed during the invasion. Japanese forces took control of Balikpapan, oil production and the refinery from 1942 to 1945.
The Battle of Balikpapan in 1945
To regain control of Balikpapan and the oil supply, the Allied forces directed by General Douglas McArthur and spearheaded by the Australian 7th Division invaded Balikpapan on 25 June 1945. After 3 weeks of fierce fighting and heavy bombing, the Japanese soldiers in Balikpapan finally surrendered on 21 July 1945. Many Japanese soldiers fought to the end in the battle. There is a Japanese cemetery hidden among the hills in Balikpapan.
The Coal Boom of Balikpapan in the 1990s
Balikpapan experienced another economic boom when it became the center of the booming coal production in East Kalimantan beginning in the 1990s.
The Balikpapan Coal Terminal completed in 1995 is one of the biggest coal terminals in Indonesia. It has a throughput capacity of 15 million tons of coal annually.
Will Balikpapan continue to boom?
Since the discovery of the first oil well in Balikpapan in 1897, Balikpapan has seen several booms in the last 120 years. It has grown from a small fishing village to become a city with a population of 850,000 today.
On 26 August 2019, the President of Indonesia, Joko Widodo, announced that Indonesia will relocate its capital city from Jakarta to East Kalimantan. As the main gateway to East Kalimantan, Balikpapan will be the center of activities during the construction of a new capital of Indonesia. So, Balikpapan will likely continue to boom.
Finally, Balikpapan indeed is a very interesting town. As an oil and coal mining town, it has been voted several times as the most liveable city in Indonesia. Thousands of oil people from around the world have worked and lived here. Many children of international expatriates and Indonesian oil professionals from Java, Sumatera and other parts of Indonesia grew up in Balikpapan. Most of them have fond memories of Balikpapan.
Many sons and daughters of the first-generation Indonesian oil professionals follow the footsteps of their parents to work for oil companies in Balikpapan. There is a saying in Balikpapan whoever has drunk the water of Balikpapan will surely return. The writer of this article lived and worked for Unocal in Balikpapan from 1976 to 1980, and he has returned to visit this interesting place many times.
Pertamina has completed the construction of the 67 km gas pipeline supplying gas to its Unit II Refinery in Dumai. With the commissioning of the 24-inch pipeline on 14 April 2019, the fuel needed to operate the refinery is now supplied by the gas produced from the nearby gas fields.
The gas comes from the following three blocks:
The prolific Grissik field located in the Corridor Block which is operated by ConocoPhillips. The Grissik field produced more than 900 MMSCF of gas per day in 2018. With an area of 2258 square kilometers, the Corridor Block is one of the largest gas blocks in Indonesia. Other very large gas blocks are the Tangguh and the Mahakam blocks.
The fields located in the Bentu Block which is managed by PT Mega Energi Persada (PT EMP). The Bentu Block is located near the city of Pekanbaru. PT EMP also supplies its gas to Indonesia’s state power company (PLN) and Riau Andalan Pulp and Paper (RAPP).
The oil and gas fields located in the Jambi Merang Block which is now operated by Pertamina Hulu Energi Jambi Merang (PHE Jambi Merang). PHE Jambi Merang acquired the block from the Joint Operating Body Pertamina-Talisman Jambi Merang on 9 February 2019.
In the past, the refinery used the fuel oil, Naptha and fuel gas it produced internally to meet the fuel needs of the refinery.
The project has brought significant economic benefits to both the gas producers and the refinery. In using the gas, the refinery is able to reduce its fuel costs by 40%.
The photo showed the drilling activity at the West Seno field, the first deepwater field in Indonesia. The photo was taken by Dr. Tony Tirta.
The average crude oil production in Indonesia in 2018 is 803,000 barrels per day according to SKK Migas of Indonesia.
Here are the top ten crude oil-producing companies in Indonesia in 2018.
Chevron Pacific Indonesia – 209,000 BOPD
Chevron is the biggest oil producer in Indonesia in 2018 and has been a leading oil producer in Indonesia for more than 90 years. It started operating in Indonesia in 1924 under Standard Oil Company of California (SOCAL).
Chevron operated oilfields in Sumatera and East Kalimantan. It’s East Kalimantan assets came from the acquisition of Unocal in 2005. Chevron handed back all the assets in East Kalimantan to the Indonesia government on October 24, 2018, after 50 years of operation under Unocal and Chevron.
Currently, Chevron’s oil production comes mainly from the oil fields located in Riau, Sumatera under the Rokan Production Sharing Contract. The biggest oil field in the Rokan PSC is the Duri field which has been under steam-flood since 1985 and is one of the largest steam flood projects in the world. Minas is another giant oil field that Chevron discovered and operated in the Rokan Block.
ExxonMobil Cepu Ltd – 208,000 BOPD
ExxonMobil Cepu Ltd is the operator of the Cepu block located in Central Java and East Java. The Cepu Cooperation Contract (KKS) was signed on 17 September 2005 and will continue until 2035. ExxonMobil holds a 45% interest in the Cepu block.
ExxonMobil started exploration in 1999, and the oil from the Banyu Urip field started to flow in December 2008.
Pertamina EP – 79,000 BOPD
Pertamina EP operated 21 oil and gas fields located in various parts of Indonesia. These oilfields are managed under five asset groups based on their geographical locations.
Located in North Sumatera and some parts of South Sumatera, the Asset One oilfields include Rantau Field, Pangkalan Susu Field, Lirik Field, Jambi Field, dan Ramba Field.
Located in South Sumatera, the Asset Two oilfields include Prabumulih Field, Pendopo Field, Limau Field dan Adera Field.
Located in West Jawa, the oilfields included in Asset Three are Subang Field, Jatibarang Field dan Tambun Field.
Located in Central and East Jawa, the Asset Four oilfields include Cepu Field, Poleng Field dan Matindok Field.
Located in the eastern part of Indonesia, the oilfields in Asset Five are Sangatta Field, Bunyu Field, Tanjung Field, Sangasanga Field, Tarakan Field dan Papua Field.
Pertamina Hulu Mahakam – 42,000 BOPD
Pertamina Hulu Mahakam became the operator of the oil and gas fields located in the Mahakam Block on 1 January 2018. The fields were previously discovered and operated by Total along with Inpex as its partner. They acquired the block in 1966.
Several giant oil and gas fields are located in this block such as the Handil field, the Tunu field, and the Peciko field.
Pertamina Hulu Energi OSES (Offshore South East Sumatera) – 30,000 BOPD
Pertamina Hulu Energi OSES became the operator of the oil fields in Block South East Sumatera on September 6, 2018. The fields were previously operated by CNOOC, China National Offshore Oil Company.
Pertamina Hulu Energi ONWJ – 29,000 BOPD
Pertamina Hulu Energi ONWJ (PHE ONWJ) is currently the operator of the Offshore North West Java (ONWJ) production sharing contract following the change of company ownership from BP to Pertamina in July 2009.
The contract area, located in the Java Sea, covers an area of approximately 8,300 square kilometers – stretching from the North of Cirebon to Kepulauan Seribu.
The giant Ardjuna field is located in this Production Sharing Contract area. It was discovered by ARCO – Atlantic Richfield Company – in 1969 and operated by ARCO until BP – British Petroleum – acquired ARCO in 2000.
The production facilities consist of 670 wells, 170 shallow water platforms, 40 processing and service facilities and some 1,600 kilometers of sub-sea pipeline.
Medco EP Natuna – 16,000 BOPD
Medco EP Natuna, a subsidiary of Medco Energi, is the operator of the South Natuna Sea Block B. The field was initially operated by ConocoPhillips until Medco Energi acquired it in 2016.
Besides producing oil, Medco EP Natuna also supplies gas to Singapore using a 656 KM long 28” subsea pipeline.
Petronas Carigali (Ketapang) – 15,000 BOPD
Petronas Carigali Ketapang operates the Bukit Tua Field located in the Ketapang Block in East Java. Bukit Tua is an oil field but with a significant amount of associated gas. The offshore field is situated at a water depth of about 57 m.
The production facilities consist of wellhead platforms, an FPSO – Floating Production, Storage and Offloading – and onshore receiving facilities (ORF) in Gresik.
PetroChina International Jabung – 14,000 BOPD
PetroChina International Jabung operates the prolific Jabung Block located in Jambi in Central Sumatera.
The company produces crude oil, condensate, LPG and gas. PetroChina supplies gas to Singapore using a 450 KM long subsea pipeline.
An interesting aspect of the block is that PetroChina discovered the fractured basement rock contains a significant quantity of gas that can flow at significant rates.
Pertamina Hulu Kalimantan Timur – 13,000 BOPD
Pertamina Hulu Kalimantan Timur operates the East Kalimantan-Attaka Work Area. Chevron was the previous operator of the work area until it handed over the operatorship to Pertamina on October 25, 2018.
Attaka, the famous giant oil field is located in this block. The Attaka field was discovered and operated by Unocal until Chevron acquired it in 2005.
The oil fields in this work area are in the late declining phase. Around one billion barrels of oil and 3 TCF of gas have been produced from this work area.
A drilling rig on top of a fixed offshore production platform. The drilling operation was supported by a floating platform.
Since 1966 when Indonesia began offering production sharing contracts (PSC) for international companies to explore and produce oil and gas in Indonesia, many giant and super-giant oil and gas fields were discovered.
Giant fields are those with estimated ultimate recoverable reserves (EUR) of 500 million barrels of oil or gas equivalent (MMBOE) and super giant oil fields are those holding an equivalent of 5.5 billion barrels of oil reserves.
Here are the ten giant offshore oil and gas fields in Indonesia discovered between 1966 and 2000.
1. Abadi Field
Abadi is a giant gas field discovered by Inpex in 2000 in the Masela contract area in the Arafura Sea. The Abadi field has an estimated ultimate recovery (EUR) of 768 MMBOE and it is located 93 miles offshore from the province of Maluku in the eastern part of Indonesia.
Originally the field would be developed using a subsea production system and a floating LNG (FLNG) facility. The plan now is to develop the field based on an onshore LNG development concept.
Inpex in partnership with Royal Dutch Shell is currently conducting preliminary front-end engineering design (Pre-FEED) studies for the Abadi field development based on an onshore concept. The LNG project will produce 9.5 MM tons of LNG annually.
When developed, the Abadi field may become the biggest deepwater gas project in Indonesia. It is expected to produce more than 1 billion SCF of gas per day and 20,000 barrels of condensate per day for 24 years.
2. Gula Field
The Gula field is an offshore gas field discovered by Unocal in its Ganal production sharing contract area located in the Kalimantan strait in 2000. With an estimated ultimate recovery (EUR) of 545 MMBOE, it is a giant gas field.
The Gula field, along with the Gendalo discovery and the Gada discovery, is one of the many discoveries made by Unocal in the deep-water area between Kalimantan and Sulawesi. These discoveries confirm that the Central Delta play contains world-class gas resources.
The Gula field is currently an undeveloped discovered resource.
3. Ubadari Field
Ubadari is a giant offshore gas field discovered in 1997. The Ubadari field has an EUR of 500 MMBOE and it is located at Bintuni Bay in West Irian province.
The Ubadari field will supply its gas to the Tangguh LNG plant when the Tangguh LNG Train-3 project is completed in 2020. The Tangguh expansion aims at meeting the ever-increasing demand for energy in Indonesia and accelerating the development of West Irian.
PLN, Indonesia’s electricity company, has signed a sales and purchase agreement to buy up to 1.5 million tons of LNG produced by Tangguh LNG plant annually.
Tangguh LNG plant is scheduled to process the gas produced from the six gas fields located at Bintuni Bay: Vorwata, Wiriagar Deep, Ofaweri, Roabiba, Ubadari, and Wos.
4. Vorwata Field
Vorwata is an offshore giant gas field located in Bintuni Bay in West Irian Province. The Vorwata field, with an EUR of 1833 MMBOE, was discovered by ARCO in the Berau block in 1997. BP became the operator of the Vorwata field after it acquired ARCO.
Gas production from the Vorwata field started in 2009. The field is capable of producing more than 1 BCF of gas per day and the gas is processed into LNG by the Tangguh LNG plant.
5. West Seno Field
The West Seno field is a deepwater oil field discovered by Unocal in 1996. Having an EUR of 553 MMBOE, it is a giant oil field and is currently operated by Chevron.
Lying in water depths of 2,400 to 3,400 feet, the West Seno field is Indonesia’s first deepwater development. It lies in the Makassar Strait PSC off Kalimantan on the continental slope of the northern Mahakam Delta.
The oil is produced using a tension leg platform and a floating production unit, tied back by two export pipelines to onshore infrastructure.
6. Peciko Field
Peciko is a gas field located offshore in the Mahakam Delta in East Kalimantan. The field was discovered by Total with INPEX as its partner in 1991. The Peciko is a giant gas field having an EUR of 1180 MMBOE.
Of all the producing fields in the Mahakam River delta, the Peciko field is unique in that its reservoir trap is both structural and stratigraphic.
The Peciko wells are highly productive having an average well productivity of 80 MMSCF of gas per day. Total daily gas production reached 1700 MMSCFD during its peak in 2005-2006. A substantial quantity of condensate is being produced along with the gas.
7. Tunu Field
The Tunu field is a supergiant gas field discovered by Total along with Inpex as its partner in 1977. It is located in the shallow waters along the outer limits of the delta offshore Mahakam Block in East Kalimantan. It has an EUR of 4378 MMBOE.
Started in 1978, the Tunu field produces gas and condensate having negligible CO2 or H2S, with the main productive reservoirs lying at depths from 2,200 to 4,900 meters.
Developing the large Tunu field is challenging and producing the gas requires drilling a large number of wells. The field has a large surface area of 20 Km wide and 75 Km long and it is located at the wetland of Mahakam swamp.
8. East Natuna Field
The offshore East Natuna gas field was discovered by AGIP in 1970. It is located 140 miles northeast of the Natuna Islands, Indonesia’s northernmost territory. It is a super-giant gas field with estimated recoverable reserves of 46 trillion cubic feet (TCF) of gas.
There were serious studies done and attempts made by Exxon-Mobil and Pertamina to develop this field.
The field is currently undeveloped due to its very high CO2 content of 71%. To produce the gas will require removing the CO2 from the gas and injecting it back into the reservoir. Production can be commercially viable when the price of oil is above $100 per barrel.
9. Attaka Field
The Attaka field is a giant oil and gas field discovered by Unocal in partnership with Inpex in 1970. Chevron became the field operator after it acquired Unocal in 2005. Having an EUR of 1000 MMBOE, the Attaka field is located 12 miles from the shore of East Kalimantan.
The huge Attaka reservoir, formed in the very prolific Kutei basin, has an areal closure of 8000 acres. Due to its large areal extent, originally the oil and gas were produced from more than 100 wells located in 6 remote wellhead platforms.
Ten years later, five subsea wells were completed in 1981-1984 to produce the untapped oil accumulation in areas out of reach of the existing remote platforms. These are the first subsea completions in Indonesia.
Attaka field daily oil production was 110,000 BOPD at its peak and gas production was 150 MMSCFPD. Now the Attaka field is quite depleted.
10. Ardjuna Field
The Ardjuna Field is a giant oil field having an EUR of 698 MMBOE. This is the first offshore giant field discovered since the birth of the Indonesian PSC system in 1966.
The Ardjuna field was discovered by ARCO in the Offshore North West Java (ONWJ) production sharing contract area in 1969. Subsequently, it was operated by BP when it acquired ARCO in 2000. Now the field is operated by Pertamina Hulu Energy ONWJ Ltd.
Interesting facts about the Ardjuna field include the drilling of the first horizontal well in Indonesia in 1985 and supplying gas to PLN’s power plant in Muara Karang in Jakarta in 1993.
Pertamina’s refinery in Cilacap began using crude oil from the Ardjuna field in 1986.
Indonesia will build the largest tidal power plant in the world in the straits of Larantuka at the Island of Flores. The power plant is designed to provide electricity to more than 100,000 residents in that area.
This Larantuka power plant project aligns with Indonesia’s commitment to increase the share of renewable energy in the total energy supply to 25% by 2025. It also commits to reduce the emission of CO2 by 300 million tonnes by 2030.
The tapping of ocean energy, consisting of wave and tidal energy to produce clean and cheaper power will grow significantly. According to Market Research Future, the annual growth rate of the global wave and tidal market is expected to be more than 17% till 2023.
Attaka central platforms from left to right: Wellhead platform, Central Processing Platform, Compression Platform, and Quarter Platform
The Attaka Field Discovery
Attaka field, a giant offshore oil field located 12 miles from the shore of East Kalimantan in Indonesia was discovered by Union Oil of California (UNOCAL) in August 1970. This giant oil field having 1023 MMBOE of recoverable reserves is the first commercial oil field discovered in offshore Kalimantan.
General Soeharto, the president of Indonesia at that time, inaugurated the Attaka field and the Santan terminal on 22 January 1973.
Santan terminal is the onshore complex where the crude oil from the Attaka field is processed and stored before it is exported by oil tankers. Santan terminal is also where the produced gas is processed before it is sent to Badak LNG for liquefaction.
Unocal along with its 50-50 partner, Inpex, operated the Attaka field until it was acquired by Chevron in August 2005. Later on, Pertamina Hulu Kalimantan Timur assumed the operatorship of the field on 25 October 2018 when the production sharing contract expired.
Interesting Facts About the Attaka Field
Two years after its discovery, the Attaka field started producing oil in November 1972, making it the first offshore field in Kalimantan.
Following the first discovery well, the Attaka Well 1A, seven appraisal wells were drilled to assess to size and potential of the hydrocarbon accumulation.
The huge Attaka reservoir, formed in the very prolific Kutei basin, is a faulted anticline. Its areal extent of oil accumulation is nearly 10 square miles. Attaka field is one of five giant oil fields discovered in the Kutei basin.
Initially, the Attaka field consisted of six wellhead platforms producing oil from 52 wells, and the central platforms comprised the Quarter Platform, Processing Platform, and Gas Compression Platform. After 1980, additional platforms and wells were added to maintain production and maximize the hydrocarbon recovery. It eventually had a total of 22 platforms and 109 wells, five of which are subsea wells.
Five subsea wells were completed in 1981-1984 to produce the oil accumulation in areas out of reach of the existing remote platforms. These are the first subsea completions in Indonesia and in Asia.
Initially, its produced associated gas was flared. Finally, the flaring stopped with the completion of the Badak LNG plant in 1977. Unocal, Total Indonesie, and Huffco were the gas suppliers to the Badak LNG plant.
Attaka wells have very high permeability. It is as high as 5 Darcy in some wells.
Attaka field’s daily oil production peaked at 116,950 BOPD in December 1977 and gas production peaked at 174 MMSCFD in October 1980.
A significant milestone was reached when cumulative oil production of 600 million barrels was recorded at 6:42 PM on March 7, 2001. Cumulative gas production in that same year was 1.3 trillion SCF.
Attaka field has more than 50 sands with variable oil reserves at depths between 2800 and 7600 feet. Reservoir sand thickness ranges from 5 to 100 feet. A multiple zone completion method using dual tubing strings and multiple packers was selected to produce them economically. This method allows the engineers the flexibility to select from which of the 2 to 4 perforated zones in each well they would like to produce
Decommissioning of Platform EB
The Attaka field has been producing oil and gas for 50 years and its production has been declining for the past 30 years. The field is currently producing less than 5000 BOPD.
Finally, the Attaka field’s EB Platform was decommissioned in November 2022. It is the first decommissioned offshore oil platform in Indonesia.
Interestingly, the EB Platform was not the oldest platform in the Attaka field. In fact, it was one of the latest platforms built in Attaka. Platform EB was built in 2000 to replace Platform E that was burnt down due to the blowout of Well E-20 in August 1997.
The EB platform was built to accommodate the drilling of seven 7 fully insurance-reimbursable wells to tap reserves estimated at 3.25 million barrels of oil and 18.5 BSCF of gas.
Jamin Djuang – A former Production Supervisor of the Attaka Field in 1980.
