The Amazing Chevron Pacific Indonesia

Welcome sign board at Caltex Rumbai camp entrance. Photo by Sasmito Adibowo.

After operating for 90 years in Indonesia and producing more than 13 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 13 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.

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.  

1924

Standard Oil of California sent a team of geologists to Indonesia in March 1924 to survey the oil potential in Central Sumatera.        

1930

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.

1936

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.    

1940

Caltex made its first discovery in Indonesia when it discovered oil in the Sebanga field in Riau in August 1040.

1941

Caltex discovered the giant oil field Duri in 1941. Duri has the largest oil deposit in Southeast Asia at that time.

1944

Caltex discovered another giant oil field, the Minas field, in December 1944.

1945

Indonesia declared its independence in 1945. This is the event that changed the ways how oil companies operated in Indonesia.

1951

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.

1952

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.

1954

The Duri field started to produce oil in February 1954.

1955

Caltex discovered the Bekasap field in September 1955.

1958

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.

1959

Minas crude was exported from the Dumai terminal beginning in January 1959.

1963

PT Caltex Pacific Indonesia appointed Julius Tahija, the first native Indonesian as its president in 1963. 

1965

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.

1966

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 September 1966.

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.

1969

The cumulative oil production from the Minas field reached 1000,000,000 barrels in May 1969.

1973

The Petapahan field began producing oil in January 1973.

Daily oi production of Caltex reached 1000,000 BOPD for the first time in May 1973.

1975

Caltex started the Duri steam flood pilot project.

1977

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.

1980

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.  

1983

Caltex completed its main office building in Rumbai.

1990

The late former President Soeharto inaugurated the Duri Steam Flood on 3 March 1990.

1995

Caltex implemented the Strategic Business Unit management system in 1995.

1997

Caltex completed the Dumai Main Office in May 1997.

2000

Chevron acquired Texaco in October 2000.

2002

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. 

2005

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.  

2008

Chevron Pacific Indonesia marked the 11th billion barrels of oil produced from its Sumatra operation in 2008.

2010

Chevron Pacific Indonesia handed over the operatorship of the Langgak block to PT Sarana Pembangunan Riau in January 2010.

2018

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.

2021

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” (counties) in central Sumatera it produced oil from 80 fields. It also operates one of the biggest and most successful steam floods in the world.

Presidents of Caltex Pacific Indonesia Since 1963

Caltex Pacific Indonesia took the initiative as early as 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),

Epilog

Although the signboards of Caltex Pacific Indonesia are no longer visible, 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:

  1. Building the first state senior high school (SMAN-1) in Pekanbaru in 1957
  2. Completion of the 350 meter-long bridge over the Siak River in 1977.
  3. 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.

Oil and Gas Activities in Indonesia in 2020

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:

  1. Reserve Replacement ratio (RRR).
  2. Oil lifting
  3. Controlling the cost recovery
  4. Revenue intake by the government
  5. 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.

COST RECOVERY

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.

  • BP Berau
  • 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.

The Three Big Oil Companies in Indonesia before 1945

Sungei Gerong Refinery in South Sumatera in 1926

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
  • CALTEX

Here are the amazing stories of these three big oil companies operating in Indonesia before 1945.


BPM

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

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

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.

Epilogue

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.

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


 

The West Seno Oil Field

Picture2
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.

The field is currently operated by Chevron.

History of the Giant Attaka Oilfield

Pres. Soeharto di Santan

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.

If you like to read more about the Attaka field here is The Ten Interesting Facts About Attaka.

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

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Performance of Oil Industry of Indonesia in 2019

IMG_4902
Power Plant at North Jakarta, Indonesia

 

Oil companies in Indonesia and SKK Migas were buzzing with activities and excitement in 2019.

Exploration and Production Results

First, here are the combined performance results of the exploration and production activities of all the oil and gas production sharing contractors in Indonesia operating under the supervision of SKK Migas in 2019:

  • Total number of active work areas: 201
  • Average daily crude oil production: 746,000 BOPD
  • Average daily gas production: 5934 MMSCFD
  • Combined total daily oil and gas production: 1,806,000 BOEPD
  • The total value of the investment: 11.49 Billion USD
  • Number of development wells completed: 322
  • Number of exploration wells drilled: 36
  • The volume of oil and gas in place discovered: 113 BBOE  
  • 2-D seismic surveys completed: 12169 KM
  • 3-D seismic survey completed: 6837 KM2

On the oil and gas discovery front, it is nice to note that REPSOL and partners PETRONAS and MOECO discovered a giant gas field in February 2019 in the Sakakemang block in South Sumatera. With 2 trillion cubic feet of recoverable gas reserves, it is one of the largest gas discoveries in the world in 2019 and also the most significant gas discovery in Indonesia in the last 18 years.

On new field development, Inpex Indonesia and SKK Migas made significant progress in developing the huge Abadi gas field and constructing the LNG plant. It was decided the LNG plant will be built in the Yamdena Island in the Maluku province of Indonesia.

The 15 Largest Oil Producers in Indonesia

Here are the 15 largest oil producers operating under the production sharing system in Indonesia in 2019:

  • ExxonMobil Cepu
  • Chevron Indonesia
  • Pertamina EP
  • Pertamina Hulu Mahakam
  • Pertamina Hulu Energi Offshore North West Java (PHE ONWJ)
  • Pertamina Hulu Energi Offshore South East Sumatera (PHE OSES)
  • PetroChina International Jabung
  • Medco E&P Natuna
  • Petronas Carigali Ketapang
  • Pertamina Hulu Kalimantan Timur
  • BOB Bumi Siak Pusako Pertamina Hulu
  • Pertamina Hulu Sanga Sanga
  • Medco E&P Rimau
  • JOB Pertamina Medco Tomori Sulawesi
  • ConocoPhillips Grissik

The 15 largest natural gas producers in 2019

Here are the 15 largest gas producers in Indonesia in 2019:

  • BP Berau
  • ConocoPhillips Grissik
  • Pertamina EP
  • Pertamina Hulu Mahakam
  • ENI Muara Bakau
  • JOB Pertamina Medco Tomori Sulawesi
  • Premier Oil Indonesia
  • PetroChina International Jabung
  • Medco EP Natuna
  • Kangean Energy Indonesia
  • PHE West Madura Offshore
  • Pertamina Hulu Energi Jambi Merang
  • Husky-CNOOC Madura
  • Mubadala Petroleum Indonesia
  • PHE Offshore North West Java

 

The SKK Migas

The SKK Migas of Indonesia has also been very proactive in its roles as the supervisor of the production sharing contractors to facilitate their exploration and production activities.

With the vision to increase the oil production in Indonesia to one million barrels per day by 2030, SKK Migas instituted the Integrated Operation Center (IOC) and the One Door Service Policy (ODSP) in 2019.

The Integrated Operation Center (IOC)

 SKK Migas launched the Integrated Operation Center (IOC) in 2019. With the IOC, SKK Migas now has online and realtime access to information and data related to the exploration, drilling and production activities of the production sharing contractors in all work areas.

The  IOC allows SKK Migas to monitor the daily field activities of all operators, understand the field situations and make prompt recommendations.

The objectives of SKK Migas in establishing the OIC are to keep the oil and gas operations go smoothly and achieve the production targets.

Currently here is the information that is being monitored by the Integrated Operation Center:

  • Oil and gas production (Production Dashboard)
  • Oil and gas lifting (Oil and Gas Lifting Dashboard)
  • Stock Management (Stock Management Dashboard)
  • Plant Operation (Plant Information Management System – PIMS)
  • Facility Maintenance
  • Project Progress
  • Vessel tracking (Vessel Tracking Information System – VTIS)
  • Real-Time Drilling Operation
  • Emergency responses (Emergency Response Center – ERC)

The One Door Service Policy (ODSP)

SKK Migas also introduced One Door Service Policy (ODSP) in 2019. Through ODSP, the applications of all the permits related to exploration, drilling, field development, and production can be processed in one place.

SKK Migas will work with and support all the production sharing contractors in preparing the required documents and submitting the applications to obtain the various permits they need.

This is a very significant service because of the various types of permits that oil operators must apply. With this one-door policy, SKK Migas is hopeful that the various permits can be obtained promptly, and the oil and gas exploration and production targets can be achieved.

The One Door Service Policy consists of four work-groups that will help the production sharing contractors deal with the following type of permits:

  • Permits related to land acquisition and use 
  • Permits related to the environment, safety and security
  • Permits related to the use of resources and infrastructure
  • Permits related to the use of materials and human resources from outside Indonesia.

Several exploration and production targets were exceeded in 2019 and SKK Migas is hopeful the new 2020 targets can be achieved also by the end of the year.

This article is adapted from the information posted by SKK Migas.