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.
PT Pertamina (Persero) is the national oil company of Indonesia, and also the largest company in Indonesia. It is the parent holding company of all the many Pertamina subsidiary companies.
Pertamina is big. As an integrated oil company, Pertamina involves in oil and gas exploration and production, refining and petrochemicals, gas distribution through pipelines, distribution of fuels, and lube oil to every corner of the land. It is also a producer of renewable energy such as geothermal energy.
On the upstream side, Pertamina owns many oil fields and work areas and has vast and expansive oil exploration and production operations in Indonesia. It also has oil and gas interests in several other countries.
Pertamina’s upstream oil and gas interests are under the wings of PT Pertamina Hulu Energi (PHE). It is the sub-holding company of PT Pertamina (Persero) in charge of its entire upstream oil and gas assets and operations in Indonesia and overseas.
The current CEO of PT Pertamina Hulu Energi is Budiman Parhusip.
Pertamina has come a long way. Its assets include oil and gas assets that Pertamina itself develops, assets it acquired from BPM (Bataafse Petroleum Maatschappij), assets it acquired from international companies upon the expiry of their production sharing contracts, and its oil and gas assets overseas.
Pertamina grew significantly in 2021 as it acquired the huge and prolific Rokan block from Chevron in Sumatera.
As Pertamina’s oil fields are located in many islands of Indonesia covering a vast area of more than 113,000 Km2, its assets and operations are divided into five regions. Each region is further divided into zones.
Here are the five regions including the zones under each region and their leadership teams.
REGION 1- Sumatera
Pertamina’s assets in Sumatera fall under Region 1 and they are managed under PT Pertamina Hulu Rokan (PHR).
Consisting of four zones, Pertamina Hulu Rokan manages the following assets:
In Zone 1 – North Sumatera Offshore (NSO), North Sumatera Basin (NSB), Rantau, Pangkalan Susu, West Glagah Kambuna, Siak, Kampar, Lirik, Jambi, Jambi Merang, Jabung
In Zone 2 – North Rokan (Rokan Utara)
In Zone 3 – South Rokan (Rokan Selatan)
In Zone 4 – Ogan Komering, Raja Tempirai, Ramba, Corridor, Prabumulih, Limau, Pendopo, Adera
Here is the current leadership team stewarding Pertamina’s exploration and production activities in Region 1.
Novy Hendri – VP Exploration
Tri Sasongko – VP Development and Drilling
Junizar Harman – VP Operation and Production
Saptiadi Nugroho – VP Business Support
Ani Surakhman – General Manager of Zone 1
Ahmad Miftah – General Manager of Zone 4
REGION 2 – Java and Natuna
Region 2 covers Pertamina upstream activities in West Java and the Natuna Sea, and they are managed under PT Pertamina Eksplorasi dan Produksi (PEP).
Here are the zones in Region 2 and the assets under each zone.
Zone 5 – Offshore North West Java (PHE ONWJ), Abar, Anggursi
Zone 6 – Offshore South East Sumatera (PHE OSES)
Zone 7 – Tambun, Subang, Jatibarang, East Natuna, The Natuna Sea Block A
Here is the new leadership team of Region 2.
Muharram Jaya – VP Exploration
Merry Luciawaty – VP Development and Drilling
Wisnu Hindadari – VP Operation and Productions
Bongbongan Tampubolon – VP Business Support
Achmad Agus Miftakhurrohman – General Manager of Zone 5
Cosmas Supriatna – General Manager of Zone 6
Astri Pujianto – General Manager of Zone 7
REGION 3 – Kalimantan
Region 3 assets and operations are located in Kalimantan, and PT Pertamina Hulu Indonesia (PHI) is the operating holding company of Pertamina in Region 3.
Here are the zones in Region 3 and the assets in each zone:
Zone 8 – Pertamina Hulu Mahakam (PHM), Pertamina West Ganal (PHWG), East Sepinggan
Zone 9 – Pertamina Hulu Sanga Sanga (PHSS), Sangata, Maratua, Tanjung
Zone 10 – Pertamina Hulu Kalimantan Timur (PHKT), Bunyu, Tarakan, Nunukan, East Ambalat, Simenggaris, Ambalat, Bukat
Here is the leadership team supervising Pertamina’s exploration and production activities in Region 3.
Bayu Giriansyah – VP Exploration
Arief Prasetyo Handoyo – VP Development and Drilling
Rachmad Wibowo – VP Production
Satya Nugraha – VP Business Support
Agus Amperianto – General Manager of Zone 8
Andri Haribowo – General manager of Zone 9
Raam Krisna – General Manager of Zone 10
REGION 4 – East Java and Eastern Part of Indonesia
Pertamina’s oil and assets located in the eastern part of Indonesia and East Java are under Region 4.
PT Pertamina Eksplorasi dan Produksi Cepu (PEPC) is the operation holding company in charge of Region 4.
Here are the zones in Region 4 and their assets:
Zone 11 – Alas Dara Kemuning (PEPC ADK), Cepu, West Madura Offshore (PHE WMO), Randugunting, Sukowati, Poleng, Tuban East Java
Zone 12 – Jambaran Tiung Biru (JTB), Banyu Urip
Zone 13 – Donggi Matindok, Senoro Tolidi, Makassar Strait
Zone 14 – Papua, Salawati, Kepala Burung, Babar Selaru, Semai
Here is the current leadership team of Region 4.
Ali Sundja – VP Development and Drilling
Muhamad Arifin – VP Operation and Production
Fransiono Lazarus – VP Business Support
Dedy Syam – General Manager of Zone 11
Iman Nur Akbar – General Manager of Zone 13
Djudjuwanto General Manager of Zona 14
REGION 5 – International
Pertamina also has oil and gas interests in several countries outside Indonesia. Its international E&P operations and assets fall under Region 5 and they are under the management of PT Pertamina International Eksplorasi dan Produksi (PIEP).
Here are the zones of Region 5 and their locations:
Zone 15 – Algeria
Zone 16 – Iraq
Zone 17 – Malaysia
Here is the current leadership team supervising Pertamina’s international exploration and production activities.
Fuji Koesumadewi – VP Exploration
Yosi Hiroshiadi – VP Development and Drilling
Charles P. Sialagan – VP Operation and Production
Ria Noveria – VP Business Support
Edwil Suzandi – Country Manager in Algeria
The total daily oil and gas production of Pertamina in 2021 is 897,000 BOEPD according to Budiman Parhusip, CEO of PT Pertamina Hulu Energi.
Here is the breakdown of the oil and gas production in 2021.
The total daily oil production is 445,000 BOPD. This comprises 349,000 BOPD from Indonesia and 96,000 BOPD from operations outside of Indonesia.
Daily total gas production is 2615 MMSCFD. This comprises 2290 MMSCFD from Indonesia and 325 MMSCFD from operations outside of Indonesia.
Pertamina drilled 12 exploration and 350 development wells in 2021.
This article is adapted by Jamin Djuang – Chief Learning Officer of LDI Training – from information published by Pertamina and various other sources.
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.
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.