To achieve this goal, EMCL has partnered with PT Pertamina Drilling Services Indonesia (PDSI) to procure the lease of rig #40.3, which comes with a Cyber Electric VFD System with a capacity of 1,500 horsepower. This rig will be utilized for the drilling of seven wells in a rotational manner.

The agreement was signed through the signing of a rig procurement contract by ExxonMobil Indonesia's Senior Vice President of Production, Muhammad Nurdin, and the CEO of PDSI, Rio Dasmanto, at the SKK Migas Jakarta Office on Thursday, August 10th.

The signing was also witnessed by the Head of SKK Migas, Dwi Soetjipto, Deputy for Business Support Rudi Satwiko, Deputy for Exploitation Wahju Wibowo, and ExxonMobil Indonesia's President, Carole Gall.

Dwi hoped that the drilling activities for the seven wells in the Banyu Urip Field are expected to enhance the production achievements of the Rokan Block, which has been constrained to a level of 18,000 barrels of oil per day (BOPD) from its current production rate of 157,000 BOPD.

"The contract signing for the rig procurement for the Banyu Urip Infill and clastic drilling aims to expedite the rig's revenue, thus advancing the drilling schedule from the initial September 2024 to March 2024," Dwi stated.

New rig procurement considered essential

The rig procurement also serves the purpose of maintaining the production performance of the Banyu Urip Field, Cepu Block, which stands as a significant contributor to the national oil production. This aligns with the current conditions of the Banyu Urip Field, which is experiencing a natural decline in production.       

Therefore, according to Dwi, drilling is essential to counter the decline rate and simultaneously explore new oil reserves. "A decline is normal, and if we want to slow down this decline, we need to drill new wells," Dwi explained.

PDSI CEO Rio Dasmanto noted that Exxon's investment value for this endeavor amounts to US$32 million, or approximately IDR 485.8 trillion, for the procurement of one drilling rig. The leasing contract spans 18 months.

"Starting from March 1, 2024, this one rig will be used for seven wells. Once the first well is completed, it will move to the second well. Each well takes two months to drill," Rio elaborated.

Rio continued that the impressive portfolio of collaborative work between 2013 and 2015 prompted Exxon to once again utilize the PDSI #40.3 rig. He mentioned that Exxon had initiated the rig booking process as early as 2020.