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.
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, 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.
In 2019, the average daily crude oil production in Indonesia was 746,000 barrels.
Here are the eight largest crude oil lifting terminals in Indonesia in 2019 according to SKK Migas of Indonesia.
WIDURI MARINE TERMINAL
Widuri Marine Terminal is operated by Pertamina Hulu Energi OSES which operates the oil fields located in the Offshore South East Sumatera contract area.
The South East Sumatera contract area was initially awarded to IIAPCO in 1968. Many big oil fields were discovered in this block such as Banuwati, Cinta, Intan, Widuri and Zelda.
Crude oil produced from these fields were stored in the Lentera Bangsa FSO – a floating, storage, and offloading vessel – and then offloaded into oil tankers.
The operatorship of this contract area changed hands many times during its 50 years of operation. Previous operators include IIAPCO, Maxus, Repsol, and CNOOC.
The average daily crude oil lifting volume of the Widuri Marine Terminal was 8501 BOPD.
SENORO MARINE TERMINAL
Senoro Marine Terminal is operated by JOB Pertamina Medco Tomori Sulawesi which is a joint operating body consisting of Pertamina Hulu Energi, Medco E&P and Tomori E&P.
JOB Pertamina Medco Tomori Sulawesi operating in the Tomori-Toili Block located in Central Sulawesi produces gas and condensate from the Senoro gas field and crude oil from the Tiaka oil field.
The gas from the Senoro field is processed into LNG by the Donggi-Senoro LNG plant which started operation in August 2015.
The average daily lifting volume at Senoro Marine Terminal was 14,857 BOPD
TUBAN MARINE TERMINAL
Tuban Marine Terminal located in East Java is operated by PT Pertamina EP. The terminal handles the lifting of crude oil that Pertamina EP produces from the Tuban block. Before 29 February 2018, the Tuban block was operated under Joint Operating Body (JOB) Pertamina Petrochina East Java.
PT Pertamina EP, established on 17 September 2005, came under the supervision of BPMIGAS on 17 September 2005. BPMIGAS became SKK Migas on 13 November 2012.
On average, 16358 BOPD was lifted at the Tuban Marine Terminal.
The Ardjuna oil terminal is operated by Pertamina Hulu Energi ONWJ which operates the oil and gas fields located in the Offshore North West Java work area.
The huge Ardjuna oil field was initially discovered by ARCO after it signed the PSC contract in 1971. ARCO later became BP West Java. Pertamina Hulu Energi ONWJ became the operator of the Ardjuna field in July 2009.
The average crude oil lifting volume from the Ardjuna terminal was 25626 BOPD.
SENIPAH MARINE TERMINAL
Senipah Marine terminal is operated by Pertamina Hulu Mahakam. The terminal was previously operated by Total Indonesie who discovered several big oil and gas fields – Bekapai, Handil, Tunu, Peciko, Sisi, Tunu – in the Offshore Mahakam block.
On average, 31539 BOPD was lifted at The Senipah Marine terminal.
The RU PP7 terminal is located in the Riau province in Sumatera and operated by Chevron Pacific Indonesia.
The average daily lifting volume at RU PP7 Terminal was 62,337 BOPD.
The Dumai terminal is located in the Riau province in Sumatera and operated by Chevron Pacific Indonesia who holds the operatorship of the prolific Rokan PSC which will soon expire in 2021.
Chevron Pacific Indonesia, also known as CPI, discovered two super-giant oilfields: the Duri field in 1941 and Minas in 1944. Subsequently, CPI continued to discover many smaller oil fields in the Rokan work area.
Due to its low gravity oil, the Duri field underwent steam flooding in 1985 to enhance the recovery of its heavy oil. The Duri field steam flood project is one of the largest in the world.
The average daily lifting volume at the Dumai Terminal was 116,555 BOPD.
BANYU URIP MARINE TERMINAL
At an average daily crude oil lifting volume of 200, 937 barrels, the Banyu Urip Marine Terminal is currently the top crude oil lifting terminal in Indonesia. It handles the lifting of the crude oil produced by Mobil Cepu from the onshore Banyu Urip field located in the Cepu Block contract area.
After the crude is processed in the central processing facilities (CPF) located at the center of the oil field, the oil is transported through a 72 KM long pipeline to the coast of Tuban, and then through a 23 KM long subsea pipeline to the FSO (Floating, Storage and Offloading) vessel. The FSO is named FSO Gagak Rimang.
The crude oil from the Banyu Urip field is lifted by oil tankers from FSO Gagak Rimang for transport to domestic and international refineries. The FSO has storage capacity for 2 million barrels of crude oil.
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.