Rokan Working Area is Officially Managed by Pertamina Hulu Rokan

Jakarta, August 9, 2021 – The Rokan Working Area (WK) has carved out a new journey in its contribution as one of the national mainstay work areas. After being discovered in 1941 and started producing in 1951, starting August 9, 2021, at 00.01 WIB, The operation of the WK will transition from the Chevron Pacific Indonesia Cooperation Contract Contractor (KKKS) to the Pertamina Hulu Rokan KKKS (PHR). 

Stakeholder support for the further management of the RokanWK can be seen from their attendance at the Rokan WK Management Transfer ceremony, which was held in a hybrid manner on Sunday (8/8) night in Pekanbaru and Jakarta. Minister of Energy and Mineral Resources (ESDM) ArifinTasrif; Minister of State-Owned Enterprises (SOE), Erick Thohir; Leaders and members of Commission VII DPR RI, Governor of Riau, Syamsuar and his staff; Head of SKK Migas, Dwi Soetjipto; President Director of Pertamina, Nicke Widyawati; President Director of CPI, Albert Simandjuntak and President Director of PHR, Jaffe Suardin Arizona attended the ceremony. Also attending the event were representatives of the SKK Migas Supervisory Commission.

Arifin Tasrif, Indonesia's Minister of Energy and Mineral Resources said the transfer of management of the Rokan WK Management from PT CPI to PHR was a defining moment in the country's upstream oil and gas industry. After PT CPI successfully manages the work area well, it is hoped that PHR can continue and develop the success that has been achieved.

For the excellent management of the work area, the Minister of Energy and Mineral Resources and the Head of SKK Migasexpressed their gratitude to PT CPI. "Since it was first produced in 1951 until 2021, WK Rokan is one of the strategic work areas that has produced 11.69 billion barrels of oil. Thank you for the efforts that have been made," said Arifin.

Dwi Soetjipto, the head of SKK Migas, expressed his gratitude to PT CPI for supporting the development of Indonesian human resources and executing CSR operations in Riau and other regions of Indonesia, in addition to achieving good performance. 

Management Transfer Runs Smoothly

The Head of SKK Migas, Dwi Soetjipto, is grateful that the transfer of management process can run well and smoothly. "To support the achievement of 1 million BOPD in 2030, since two years ago we have worked hard, trying to make the transfer of management run smoothly and maintain the level of oil production at the end of the PT CPI contract period. This is an important matter for the nation and the state considering that the Rokan WK currently still supports 24 percent of national production and is expected to remain Indonesia's mainstay work area," said Dwi Soetjipto.

One of SKK Migas' efforts to oversee the transfer of management of the Rokan WK is to initiate a Head of Agreement (HoA), which guarantees PT CPI's investment at the end of the contract period. As a result, since the HoA was signed on September 29, 2020, to August 8, 2021, 103 development wells have been drilled. In addition to drilling, SKK Migas also oversees 8 other issues that are the key to the successful transfer of management. It includes data and operational migration, procurement of chemical EOR, management of operating support contracts, procurement of electricity, manpower, transfer of information technology, licensing and operating procedures, and management of the environment.

"We are grateful for the support of various parties, including the Riau Regional Government. Therefore, the operation of the Rokan WK during the transition period goes well," continued Dwi.

Albert Simanjuntak as Managing Director of Chevron IndoAsia Business Unit & President Director of PT. Chevron Pacific Indonesia expressed its appreciation, "We thank you for the collaboration that has existed during the transition period with SKK Migas and Pertamina, so that the transfer of management runs safely, reliably, and smoothly. Hopefully, WK Rokan can continue to give its best contribution to the nation and state," he explained.

WK Rokan Sustainability

At the end of July 2021, the average production of WK Rokanis around 160.5 thousand barrels per day or about 24% of the national production and 41 million cubic feet per day (MMSCFD) for natural gas. Minister Arifin expects that PHR would commit to making significant investments to ensure that the production from the working area does not decline and, in fact, increases.

"This must be Pertamina's commitment, considering that the Rokan WK is one of the largest WKs in Indonesia. It has strategic value in meeting the production target of 1 million BOPD and 12 BSCFD in 2030," added Minister Arifin. 

Dwi Soetjipto said that the preparations made during the transition period could be PHR's capital to develop the RokanWK. PHR is anticipated to use advanced technologies to enhance the potential of the WK in the future. 

The new contract of WK Rokan, which adheres to the Gross Split PSC system, is a challenge in carrying out activities in the field. Therefore, Pertamina is required to remain professional in managing the Rokan WK. Pertamina is also expected to increase investment and maximize production considering the potential of the Rokan WK, which is still quite promising.

WK Rokan production is expected to reach 165,000 barrels per day by the end of 2021, with new wells addition this year. Furthermore, WK Rokan is expected to remain one of the main producers of national oil.

Nicke Widyawati, President Director of PT Pertamina(Persero) as the holding company of PT Pertamina Hulu Rokan (PHR), said that the management of the Rokan WK by Pertamina ahead of the Independence Day of the Republic of Indonesia is a pride for Pertamina and the Indonesian people. It is also a form of support from the entire Indonesian nation so that the transfer of management goes well.

To ensure the smooth management transfer, added Nicke, Pertamina through PHR has also formed a Transition Team. The team will maintain smooth operations, particularly in the subsurface, production operations, project and facility engineering, K3LL operations, human resources, finance, commercial aspects, asset supply chain management, and IT.

"No less important in this process of transfer of management, we remind everyone of the high risk of managing the oil and gas business, not only the reliability process but the HSSE (Health, Safety, Security and Environment) aspect that remains our concern," said Nicke.

To all PHR management and workers, Nicke advised continuing to focus on carrying out the mandate from the Government to provide the best for the country, society, and nation through the management of the Rokan Block to realize Indonesia's energy independence and sovereignty.

"Pertamina also has another mandate, which is to support the Government's program to achieve crude oil production of one million barrels of oil per day (BOPD) and 12 billion standard cubic feet per day (BSCFD) in 2030. We also expect full support from the Central and Regional Governments as well as all stakeholders and the community to realize these noble ideals," explained Nicke.

By 2021, PHR plans to drill 161 new wells, including the remaining wells from the previous operator commitments. By 2022, PHR plans to drill approximately 500 new wells. This commitment is the investment commitment and the largest number of wells among other oil and gas CAs in Indonesia. The drilling activity will be supported by the preparation of an additional ten drilling rigs so that in total, there are 16 drilling rigs and 29 rigs for Work Over & Well Service activities which are a mirroring of the previous contract.**