Tag: JOB Pertamina Medco Tomori Sulawesi

Indonesian oil industry

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.

oil terminals in Indonesia

Eight Largest Oil Lifting Terminals in Indonesia

oil storage tanks
Oil Storage Tanks

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.

  1. 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.

  1. 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

  1. 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.

  1. ARDJUNA 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.

  1. 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.

  1. RU PP7

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.

  1. DUMAI TERMINAL

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.

  1. 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.

This article is written by Jamin Djuang based on the information published by SKK Migas. He is the founder of LDI Training which provides oil and gas training and the published author of The Story of Oil and Gas.