The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) has granted approval for the Sumatra Light Oil Phase-4 Project in the Rokan Working Area (WK), which will involve an investment of approximately IDR 12.5 trillion, and the use of Enhanced Oil Recovery (EOR) system.
PHR to contribute to state revenue and other benefits
The project is expected to generate an estimated national revenue of IDR 10.5 trillion through the production of 26 million barrels of oil.
Dwi Soetjipto, the Head of SKK Migas, explained that the project is managed by the Contractor Cooperation Contract (KKKS) Pertamina Hulu Rokan (PHR), and is predicted to add approximately 26 million barrels of oil reserves with a peak production rate of around 10,000 barrels of oil per day (BOPD) in the Rokan WK.
“SKK Migas remains committed to supporting the development of the Rokan WK, as we are aware that it continues to be the backbone of national oil production, with an average output of 160,000 BOPD. With the approval of Phase-4 of the OPL, we hope that PHR can achieve its production targets,” said Soetjipto on June 17, 2023.
The scope of the SKK Migas-approved Phase-4 OPL includes drilling 245 wells and updating production methods to manage the additional oil.
“We would like to express our gratitude to Pertamina, through PHR, for realizing their commitment to invest in the Rokan WK. In addition to striving to meet national production targets, this investment is also expected to have a multiplier effect on the communities in Riau Province,” added Soetjipto.
The expected dual impact includes the creation of business opportunities for local entrepreneurs, job creation for the local workforce, and the implementation of corporate social responsibility programs by the KKKS.
Soetjipto emphasized that the upstream oil and gas industry not only provides technical benefits but also non-technical benefits, particularly for the communities residing in the operational areas.
This project marks a significant milestone in the development of the Sumatra oil fields, and its successful implementation is expected to contribute to the economic growth of the region while ensuring the sustainable extraction of valuable natural resources.
Use of EOR to boost production
PHR will carry out advanced oil dewatering using EOR in the Rokan Block. This oil dewatering uses the steam injection method into the reservoir, which aims to find new oil reserves to support national energy security.
Previously, the government encouraged the implementation of EOR technology on old oil and gas wells for the field scale, to boost oil and gas production.
Edwil Suzandi, PHR’s EVP Upstream Business, said that efforts to drain the oil at a later stage had positive results. This success is a continuation of the development of the new steamflood project.
Suzandi explained that 68 wells have been drilled, including 47 production wells, 15 steam injector wells and 6 observation wells with an estimated 6.47 million barrels of oil (MMBO).
