Indonesia's Pertamina Expects up to 180,000 bpd from Rokan Block when It Takes Over from Chevron

Indonesian state oil company PT Pertamina expects to produce 170,000-180,000 barrels per day (bpd) at the Rokan block when it takes over in August next year, the chief executive of Pertamina Hulu Energi, Budiman Parhusip, said on Wednesday.

The government decided in 2018 that the operation of Rokan, Indonesia's second-biggest crude oil producing block, would be transferred to Pertamina when Chevron Pacific Indonesia's contract expires in August 2021.

Pertamina previously estimated that the block's output would drop to 140,000 bpd in 2021 if it did not drill ahead of schedule.

"We hope production could be maintained at 170,000-180,000 bpd when Pertamina takes over," Parhusip told a virtual conference, adding that Pertamina, SKK Migas and Chevron are in talks for Chevron to continue drilling until July next year.

After Pertamina takes over and drills more wells, it will aim to produce up to 200,000 bpd and even more in future, he said, without giving a specific timeline.

Chevron will drill 107 wells before its contract ends, Satya W. Yudha, an adviser to the chairman of SKK Migas told the conference.

Eleven wells will be drilled in November and December and then 96 from January to July next year, although further discussion was needed, he said.

Crude production at Rokan Block in the January to May period was 180,780 bpd, exceeding SKK Migas' target by 5%, SKK Migas data showed last month.

"PT. Chevron Pacific Indonesia continuously engages relevant stakeholders to ensure a safe, reliable and smooth transition of the Rokan operations in August 2021," a Chevron spokesman said.

"We are collaborating intensively with SKK Migas to prepare the technical implementation," he added. 

(Reporting by Wilda Asmarini Writing by Fathin Ungku Editing by Robert Birsel and Louise Heavens)