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Oil Production in Indonesia’s Oldest Field is Expensive

The cost of oil production in the Rokan Block, Riau, is said to be expensive. The reason is, to exploit oil in Indonesia’s oldest oil field, an advanced dewatering method or Enhanced Oil Recovery (EOR) is needed with more expensive technology.

Chairman of Commission VII DPR RI Sugeng Suparwoto explained that the high cost of oil exploitation in the Rokan Block was also due to the very high water content in the oil well, even reaching 99%.

“We also encourage what is called EOR because the volume of water is very large, in Rokan for example 99% is water. “So production per barrel is very expensive,” he explained to CNBC Indonesia in the Energy Corner program, Tuesday (7/11/2023).

However, he said that expensive oil production must continue to be boosted to maintain domestic oil production levels.

“The point is that we have to do our maximum so that we can maintain the appointment,” he concluded.

As is known, PT Pertamina Hulu Rokan (PHR), operator of the Rokan Block, is currently at the peak of oil and gas (oil and gas) production in Indonesia. The Rokan Block oil production is at the level of 172,000 barrels per day (bpd).

EVP Upstream Business Edwil Suzandi said that the highest production achievement in the Rokan Block was achieved thanks to the second anniversary of the transfer of management by Chevron to PHR. Apart from that, this achievement also coincides with the commemoration of the 66th anniversary of Riau Province.

Alhamdulillah, today PHR is a historic moment for PHR where it coincides with the 2 year transfer of management of the Rokan Block and the Riau Anniversary, PHR production in the Rokan Block reached 172,710 bpd, which is the highest figure since the transfer of management and also, God willing, it will become a production figure “The highest oil and gas industry in Indonesia at the moment,” said Edwil based on a written statement, Wednesday (9/8/2023).

Edwil emphasized that this highest achievement cannot be separated from the contribution of PHR workers and partners, as well as support from policy stakeholders and the people of Riau. He also expressed his gratitude for all parties’ support for PHR so far.

“Hopefully PHR can continue to improve its performance in an effort to support national energy and achieve the target of 1 million barrels of oil per day by 2030,” said Edwil.

Oil production in Indonesia’s oldest block has now even overtaken production from Indonesia’s youngest oil field, namely the Banyu Urip Field, Cepu Block, which is managed by ExxonMobil Cepu Ltd.

Oil production from the Cepu Block is now in the range of 140 thousand barrels per day (bpd).

Source: CNBC Indonesia