Welcome To Pertamina, Thank You Chevron Indonesia For 97 Years Of Managing The Rokan Block

JAKARTA - PT Pertamina Hulu Rokan has officially become a company managing oil fields in the Rokan Block, Riau Province, making a new history in the transfer of management of petroleum mines in Indonesia.

As of 00:01 WIB, August 9, 2021, the operational work area has shifted from being previously managed by PT Chevron Pacific Indonesia (CPI) to Pertamina Hulu Rokan, which is a subsidiary of PT Pertamina (Persero).

"This is a very historic moment for all of us, a moment of pride for all of us, where the Rokan Block is officially managed by Pertamina today which of course will support national energy security," said Pertamina President Director Nicke Widyawati in a virtual speech at the Transfer of Management event. Rokan Working Area, quoted from Antara, Monday 9 August.

Nicke said that Pertamina was committed to carrying out this mandate in the interests of the Indonesian nation and state considering that the Rokan Block contributed 24 percent to national oil and gas production.

According to him, the management of the Rokan Block to Pertamina as a state-owned company will provide wider benefits for the state both in terms of management and state revenue, as well as strengthen Pertamina's position through Pertamina Hulu Rokan which will play a role as a locomotive of development and the national economy.

"Not only that, Pertamina also has another mandate to support the government's program to achieve crude oil production of 1 million barrels per day by 2030," said Nicke.

After being released by Chevron Pacific Indonesia, Pertamina Hulu Rokan has now officially taken over the management of the oldest oil and gas mine in Lancang Kuning for the next 20 years.

The transfer of management is in accordance with the mandate issued by the government through the Minister of Energy and Mineral Resources in 2018.

Head of SKK Migas Dwi Soetjipto explained that the effort to transfer management had been going on for the past two years. He is grateful that the transfer of management process can run well and smoothly

"This is an important matter for the nation and the state considering that the Rokan Working Area 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 Block is to initiate a Head of Agreement (HoA) which guarantees Chevron Pacific Indonesia's investment at the end of the contract period.

As a result, since the agreement was signed on September 29, 2020 until August 8, 2021, 103 development wells have been drilled.

In addition to drilling, SKK Migas also oversees eight other issues that are the key to successful transfer of management, namely data and operational migration, procurement of chemical EOR, management of operational support contracts, electricity procurement, manpower, transfer of information technology, licensing and operating procedures and management of the environment.

Minister of Energy and Mineral Resources Arifin Tasrif in his directive said that the transfer of management of the Rokan Block is one of the milestones in the history of the upstream oil and gas industry in Indonesia.

He hopes that Pertamina Hulu Rokan can continue and develop the success that has been achieved by Chevron Pacific Indonesia in managing the petroleum working area.

"Since it was first produced in 1951 until 2021, the Rokan work area is one of the strategic work areas that has produced 11.69 billion barrels of oil," said Arifin.

Chevron Pacific Indonesia President Director Albert Simanjuntak expressed his gratitude for the trust given by the government in managing the Rokan Block for 97 years and making the region the largest oil producer in Indonesia.

"Thank you for the opportunity given to us to carry out both operational and community-supporting activities for almost a century," said Albert.