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View all search resultsSKKMigas bets on Rokan Block to meet 2030 oil output goal
A day after the historical takeover of the Rokan oil and gas block from United States-based supermajor Chevron, Pertamina upstream subsidiary PT Pertamina Hulu Rokan (PHR) carried out its first drilling activity at one of Indonesia’s most lucrative oil blocks.
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T
he Upstream Oil and Gas Special Regulatory Task Force (SKK Migas) expects the oil output of the recently nationalized Rokan Block to increase two and a half-fold over this decade in meeting the agency’s long-term energy goal.
The Rokan Block currently produces 160,000 barrels of oil per day (bopd), but SKK Migas secretary Taslim Yunus said on Thursday that the block was expected to produce 400,000 bopd by the end of 2030.
“That means 40 percent of the 1 million bopd [by 2030] target,” Taslim said in a webinar by CNBC Indonesia on Thursday, referring to the long-term goal.
State-owned upstream oil and gas firm Pertamina Hulu Rokan (PHR), which took over the block on Monday, will implement enhanced oil recovery (EOR) techniques in the lucrative Minas Field and develop other fields within the block over the medium- to long-term to boost production, he added.
Read also: Pertamina officially takes over Rokan oil, gas block from Chevron
The higher production promises to reinstate Rokan as Indonesia’s most productive oil block, a title that it lost to the Cepu Block in East Java in 2019.
The latest SKK Migas data shows that Rokan has produced 160,646 bopd as of June 30, which accounted for 24 percent of the national output, ranking it second to the Cepu Block, which has produced 31 percent of the national output.
Energy and Mineral Resources Ministry oil and gas director general Tutuka Ariadji added that the government wanted PHR to explore the unconventional oil and gas potential in the Rokan Block to raise production.
“What we are waiting for is PHR exploiting unconventional oil in the Rokan Block and using EOR to raise reserves,” he said on Thursday.
PHR drilled its first oil and gas well in the Rokan Block on Tuesday, the day after the historic takeover of the block from United States-based supermajor Chevron.
PHR is set to drill 141 wells in 2021, according to its revised 2021 work program and budget (WP&B), up from the previous plan of drilling 84 wells. The company aims to raise its output by 2.7 percent to 165,000 bpd this year.
“During the management transfer, PHR is committed to drilling 161 wells by 2021. Hopefully, this commitment can be fulfilled,” SKK Migas operations deputy Julius Wiratno said in a statement on Thursday.
PHR plans to implement CPI programs that face obstacles toward the end of the transition period. SKK Migas and PHR have taken several measures, including overseeing an environmental impact assessment (Amdal) and accelerating the rig procurement process, to achieve the target.
