Energy Minister Calls for Sustainable Production and Efficiency in a Visit to Rokan

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 366.Pers/04/SJI/2021

Date: 14 October 2021

Energy Minister Calls for Sustainable Production and Efficiency in a Visit to Rokan

After 97 years of management by a multinational company, the Rokan Block is believed to still hold a large amount of oil and gas. For this reason, the management of Pertamina must carry out massive drilling exploration to increase production, Minister of Energy and Mineral Resources (EMR), Arifin Tasrif, has said during a work visit to the production facilities of the Rokan Block Oil and Gas Work Area on Thursday (14/10). If previously steam flood method was employed, in the future please use Chemical Enhanced Oil Recovery (CEOR), Arifin continued.

Escorted by Riau Governor Syamsuar, the Minister of EMR visited the facilities with a group of officials, namely Director General of Oil and Gas Tutuka Ariadji, President Director of PT Pertamina Hulu Energi (PHE) Budiman Parhusip, and President Director of PT Pertamina Hulu Rokan (PHR) Jaffee A Suardin. Besides the Duri Field, the group visited the Minas Field to inspect wells that employed CEOR.

Minister Arifin expressed his appreciation to Pertamina for performing exploration activities by adding new wells, taking efficiency measures, and applying modern production technology such as those used at the Integrated Optimization Decision Support Center (IODSC).

"Never stop making improvements. Try to make breakthroughs and increase added value. Don't become complacent about technological developments, and continue to monitor technologies that can provide great benefits for the company. You are all our heroes of foreign exchange earnings," continued Arifin.

Arifin also said that the global community had agreed to reduce the use of fossil energy sources and switch to more environmentally friendly, renewable energy sources.

"We have also agreed on the Paris Agreement. We have issued the legislation on emission reduction targets. The global community is targeting to achieve net zero emissions by 2050 while our country is preparing a roadmap and the strategies to get there. This is not an easy task," explained Arifin.

Speaking on energy transition, Riau Governor Syamsuar said that the shift from oil fuels to renewable and environmentally friendly energy sources had taken place in Riau where oil-palm plantations spanned 3.4 million hectares of land.

"The transition from oil fuels to (palm-oil) biofuel has taken place in Riau. Pertamina has carried out the project in its Dumai Refinery since 2019. So, B30 program is running well in Riau, and it will continue to be developed to B50 and even B100 as instructed by Mr. President," said Syamsuar.

What we need to do now, continued Syamsuar, is to carry out downstream palm-oil processing because Riau exports a large amount of palm-oil.

President Director of PHR, Jaffee A Suardin, said the Central Gathering Station (CGS) 10 inspected by the Minister of EMR was the largest oil collection station in Duri Field. It processes about 240,000 barrels of fluid per day and produces about 20,000 barrels of oil per day. Duri Field is one of the largest steamflood fields in the world which utilizes high technology and, therefore, is environmentally friendly.

"The technology proves that it successfully increases production performance of the Duri Field five times as much as conventional technology," said Jaffee.

Meanwhile, continued Jaffee, the IODSC was the center for digital activities of the Rokan Work Area. The adoption of digital technology at the work area delivers at least four main benefits, namely increased safety performance, a significant 40% reduction in production loss, optimized production facility capacity, and increased efficiency.

The Rokan Block is one of the largest oil and gas blocks in Indonesia. Decision of Minister of EMR Number 1923 K/10/MEM/2018 of August 6, 2018 sets out that as of August 9, 2021 on 00.01 Western Indonesia Time (WIB), the management of the Rokan Block in Riau Province is transferred to PT Pertamina Hulu Rokan (PHR). This is a milestone in Indonesia's history because the block had been managed by PT Chevron Pasific Indonesia (CPI) since 1951.

The Rokan Block spans an area of 6,220.29 km2 with ten main oil fields namely Minas, Duri, Bangko, Bekasap, Balam South, Kota Batak, Petani, Lematang, Petapahan, and Pager. As of January 1, 2020, it held 350.73 million stock tank barrels (MMSTB) of oil reserves and 9,071 billion of standard cubic feet (BSCF) of natural gas reserves.

Between 1951 and 2021, the Rokan Block has produced 11.69 billion barrels of crude oil. On average, it produces 160.5 thousand barrels of crude oil per day and 41 MMSCFD of natural gas. (IY)

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