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Rig dearth aggravates RI’s declining oil, gas production
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Chevron Indonesia operates an offshore platform on April 23, 2019, in Sepinggan field in Makassar Strait, 37 kilometers east of Balikpapan, East Kalimantan. (JP/Novi Adri)
P
ertamina EP, the exploration and production arm of state-owned oil and gas giant Pertamina, blamed a dearth of oil rigs for hampering efforts to achieve the 1 million barrels of oil per day (bopd) target.
Bayu Kusuma Tri Aryanto, the company’s Region 2 vice president for supply chain management, said on Monday that many jackup rigs were being used abroad, limiting the number of rigs readily available for oil companies with operations in Indonesia.
“The challenge we are facing is the dearth of rigs; they’re now being pulled out of Indonesia,” Bayu said in Jakarta on Monday, as reported by Kompas, suggesting that stakeholders put more effort into ensuring the availability of rigs in the country by establishing a farm-in rig procurement contract.
The farm-in scheme enables contractors to arrange the use of a single rig between operators under one agreement, which may make it possible for them to keep their operations going in times when rigs are difficult to secure.
Bayu went on to stress the importance of cooperation between the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) and the contractors in keeping existing rigs within the country.
Read also: Rate of Indonesia oil production decline has slightly improved: SKK Migas
Moshe Rizal, who heads the investment committee of the Association of Oil and Gas Companies (Aspermigas), said the limited number of rigs was just one of many factors behind Indonesia’s steadily declining oil production.
