Improving the Value-Risk Management on Revitalizing Mature Oil Fields in One Company's Operating Area

Abstract

Abstract PERTAMINA's mature oil and gas fields in Indonesia have a typical problem related to the following conditions, e.g.: limited data quantity and quality, depleted reservoir with a high watercut, sand/scale problems, small fields in different area (scattered), and mostly having an old infrastructure. However, PERTAMINA has strengths on experienced engineers (local knowledge), high asset value (reserves, operation area, production facilities, and existing infrastructure), committed gas markets, mostly onshore fields, and the fields still under primary recovery. Moreover, there are some unexplored "upside potentials" (deep zones, shallow prospects, adjacent area) surrounding the existing fields. This paper introduces and discusses the efforts of Management of PERTAMINA Indonesia on managing the values and the risks of the mature fields through a spirit of maximizing their economic recovery. It covers all the potentials by valuation of the assets and making their portfolio investment, applying a new selected technology and approach for focused area, creating a new interpretation for old available data, and optimizing the method of existing production. Assessing the assets (from reserves to surface infrastructures and company strengths) becomes a primary and critical step before prioritizing and focusing the objective area. Then a reserves evaluation is the further step that maps a new business opportunity. One of the conclusions of reserves evaluation is that the unrecoverable reserves of PERTAMINA's mature fields are still huge and possibly recovered by enhanced oil recovery methods. By taking the experiences on rejuvenating the South Sumatra, East Java, and Kalimantan mature fields, and the partnership of TAC, JOB, and BOB in managing the mature fields, management of PERTAMINA has self-assurance on further development of their mature fields spread on the eleven operation areas in Indonesia. PERTAMINA puts a great hope on creating the values of their mature fields in the near future