CATEGORIZED | News

Challenges remain for Indonesian oil industry, but so do opportunities

Posted on 27 August 2008

The opening session also included remarks from conference chairman Dr Bagus Sudaryanto, senior vice president of operations for PT PERTAMINA EP. He set the stage by elaborating on the conference theme, “Drilling Technology to Address Future Energy Demand and Environmental Challenges.”  Echoing the Minister’s views, Dr Sudaryanto pointed out that “the growing demand for energy in this high-price environment has made it more important than ever to ensure we find steady and reliable sources while maximizing our recovery.”

Indonesia’s present situation was described in more detail by Abdul Muin, vice chairman of the Government Executive Agency for Upstream Oil and Gas Business Activities, BPMIGAS. Dr Muin presented data showing that the country’s production has been steadily declining since 1995. Despite increases resulting from recovery optimization and accelerated in-fill drilling, as well as the introduction of 96 new fields, total production has continued to trend downward.

Prospects are not all bad, however. The country’s production declines have led to the emergence of “a new breed of mature field operator.” Often smaller companies, these new operators have identified previously untapped areas of existing fields. They have slowed decline rates by applying existing technology in new and innovative ways. They also tend to have lower operating costs, thereby further extending field life.

The industry’s more substantial players have been able to focus on the larger targets. Techniques include extensive EOR projects in existing fields coupled with new exploration in deepwater areas. Unconventional sources of energy, including tight gas, CBM and even geothermal resources, are also being evaluated. These efforts are driving the accelerated development and application of new and innovative technology.

In the end, the leaders of Indonesia’s oil and gas industry remain bullish on their country’s energy future. Slowing, and even reversing, declining production will be possible. Dr Muin summed it up by saying, “The prospects are there… it is a function of money and technology, commitment and better partnering.”

Leave a Reply

*

FEATURED MICROSITES


Recent Drilling News

  • 31 October 2014

    Japan Drilling to operate new jackup under construction at Keppel

    The KFELS Super B Class design has a drilling depth of 35,000 ft. The rig's leg structure is designed to provide enhanced robustness for operations at 400 ft water depth...

  • 29 October 2014

    New intelligent water management solution based on oxidizer technology

    Nalco Champion has launched the RenewIQ line of oilfield water reuse solutions to help operators reduce freshwater consumption and associated handling costs...

  • 29 October 2014

    Baker Hughes launches all-electric intelligent well system

    Baker Hughes has commercially released its MultiNode all-electric intelligent well system. It allows operators to remotely monitor and control a greater number of production zones...

  • 29 October 2014

    Tercel collaborates with TOTAL to design MicroCORE PDC drill bit

    Tercel Oilfield Products has launched the MicroCORE cutting system at the 2014 SPE Annual Technical Conference and Exhibition in Amsterdam. The MicroCORE cutting...

  • 28 October 2014

    First extension well in pre-salt Libra leads to oil discovery

    The Libra consortium announced that the drilling of the first extension well in the Libra area, known as 3-BRSA-1255-RJS (3-RJS-731), has proven the discovery of high-quality oil...

  • Read more news