Digital Oil Field – Starting in Indonesia

This week PT Petrosa Global Energy successfully completed trail phase and presented the first Digital Oil Field installation for Indonesian Company: Pertamina EP. Weatherford-produced equipment was installed on two wells in Pertamina Lirik Oil Field in Riau. 

This job was performed in collaboration with PT Airspan Networks Indonesia and PT Yokogawa Indonesia.

It is a well known fact, that 70% percent of the world's oil production comes from mature fields. And in their need to increase productivity the Oil & gas companies are on an expanded base using modern technologies. Of course, digitation and the Internet are not pushed aside and the concept of Digital Oil Field (or Field of the Future, Smart Field, i-Field) are being used worldwide. Now, it comes to Indonesia on a more accepted solution. For over three years, Chevron operates Digital Oil Field solution, provided by Weatherford, on 1,150 wells in its Duri field. At this time, we introduce technology to PT. Pertamina EP.

 

In fact, this was the first time that all technical staff and management had the feeling how it works. The data is collected by installed sensors and using wireless technologies supplied by PT Airspan Networks Indonesia is transmitted via the Internet to a server in Jakarta. This real-time data can be picked up anyplace in the world, analyzed and used in practical decision-making process. Weatherford developed and produced technology includes: Field Office software suite; variety of techniques to data collection (by controllers, gauges, instruments, meters, communication)

READ MORE at our Corporate Web-site

 

Indonesia Oil and Gas: Landscape – (Part II)

Continuing discussion from my last post, I would like to display this slide that nicely illustrates Indonesian industry – this was  presented  by Evita H Legowo, Director General Of Oil And Gas in February 2012:

The current state of Indonesian upstream is well described by Satya W. Yudha ,  Member of Commission VII ‐ The House of Representatives ‐ DPR RI in 2012 in this slide

 And he also suggested that:

Upstream Oil & Gas:

• Government should set more competitive contract and fiscal term and other economic policies to attract the investor in oil & gas sector such as development of deep water basin, CBM, Mature field and frontier areas which involve more complex processes, confronting high risks, frontier technology and more complex project financing.

• In near term, to improve governance upstream management capability, to review the competency of the management of upstream implementing body (BPMIGAS) more efficient and transparent bureaucracy, standard accounting system, Cost recovery mechanism.

RECENT DEVELOPMENTS

According to SKKMigas, in 2012, the country drilled as many as 119 exploration wells, the highest amount of explorations in Indonesia in the past decade. Of those 119 wells, 52 were reported to possess total reserves of 541 million barrels of oil as well as 5.4 trillion cubic feet of gas.

This last February SKKMigas head, Rudi Rubiandini, announced that oil and gas contractors would drill 1,178 development wells this year.  They are expected to generate 75,044 bpd of oil and 587 million metric standard cubic feet per day of natural gas by the end of this year. Workover campaigns and well services would be conducted on at least 1,904 existing oil  fields, which is expected to boost oil output by 46,647 bpd and gas output by 351 mmscfd. Thus, in total, all the projects would contribute 14% to Indonesia’s overall oil production target and 11% to its projected gas output in 2013. SKKMigas also announced  later that it would gear up drilling activities on the exploration wells of around 258 basins as well as launch an 18,752-kilometre, 2-D seismic survey and a 22,298-square-kilometre, 3-D survey. 

Source: 2012 PERFORMANCE & 2012 PERFORMANCE & 2013 WORK PROGRAM

Last May, it was announced by SKKMigas that in 2015 there will be five major upstream oil and gas projects that will provide significant additional production. These are: Indonesian Deep Water Field Developmen (IDD), Banyu Urip Field, Masela, Muara Bakau Jangkrik dan Jangkrik and North East as well as the Tangguh Train III. 

Of course, the picture is far from rosy – and some major players are indicating their dissatisfaction. It was reported in March, and confirmed in June -- Hess Corp. and Anadarko Petroleum Corporation are considering getting out.

The latest news can be found in my post News Update - Week 24, 2013; Please, follow our Blog – We will update every week….

And here are some useful links that give more information:

• The dissolution of BPMIGAS — impact and consequences by Latham & Watkins LLP
• Oil and Gas in Indonesia. Investment and Taxation Guide by PwC August 2011 - 4th edition
• Detailed report on oil and gas in the country is provided in this Indonesian Energy Report by Norton Rose
• Challenges in Indonesia’s Oil and Gas Industry by Global Business Guide gives some description of Oil and Gas  Industry and Law
• Indonesia Oil and Gas Laws by Oentoeng Suria & Partners (OSP), an Indonesian commercial law firm
• Getting the Deal Through – Gas regulation 2008 by Soewito Suhardiman Eddymurthy Kardono
• A little bit outdated but more or less full characteristic is presented on Indonesia, Oil & Gas Profile by A Barrel Full
• US Energy Information Administration page on Indonesia has fresh information and full report on Indonesia sector may be uploaded here
• Geologic Basins Map is provided by Indonesian Petroleum Association that also lists Indonesian Law documents