Two subsidiaries of State energy company PT Pertamina − PT Pertamina EP (PEP) and PT Pertamina Hulu Sanga-Sanga (PHSS) − are embroiled in the Borderless Program, a breakthrough scheme to increase oil and gas production in Sanga-sanga area of East Kalimantan, theoverlapping work area (WK) of both companies.
The Borderless Program is a synergy and operational efficiency program for overlapping areas between Pertamina EP Sangasanga Field and PHSS.
Pertamina EP Sanga Sanga Field Senior Manager, Sigid Setiawan, said that the Borderless program allows significant savings in drilling and production activities by utilizing facilities and resources together. According to him, currently drillings in eight development wells in the area have been completed, while three additional wells are in the drilling stage with a target completion date of November 12, 2024.
The NKL-1170 well is one example of an overlappedarea that is now managed together. The NKL-1170 well is the name given for the PEP Sangasanga well. This well has a layer operated by PEP to a depth of 2,000 meters, while the lower layer is operated by PHSS.
“This collaboration model is more efficient than separate operations by each entity, which previously resulted in higher costs,” Sigid told to journalits on Tuesday, November 5, 2024.
With the Borderless Program, Pertamina has succeeded in reducing drilling costs from an average of US$7 million to US$ 5 million for each well, resulting in savings of around US$2 million per well.
“These savings are very significant, especially in our three main districts that have overlapping layers, namely the north (Sembera), central (NKL), and south (Samboja),” Sigid said.
Until 2027, the work plan will include drilling of 29 development wells in a borderless format. In addition to saving drilling costs, this program also accelerates land management, utilization of shared facilities, and procurement of goods, thereby increasing overall operational effectiveness.
Assistant Manager for Drilling at PT Pertamina Hulu Indonesia, Hendry Nasution said it took more time and money before the Borderless Program was applied.
“Through this program, we are able to optimize opportunities, from land management to collective utilization of facilities,” he said.
The program was established through a Joint Operation Agreement (JOA) by the Head of the Upstream Oil and Gas Regulatory Task Force (SKK Migas) in 2023, which allowed the two contractors to work together in drilling activities, well interventions, production facilities, and procurement of goods and services.
