Printer Friendly

Indonesia - Profiles of the other main operators and their main fields.

Central Sumatra - Chevron: PT Caltex Pacific Indonesia (CPI) is the local unit of Caltex which in October 2001 was re-named ChevronTaxaco Asia, Middle East, Africa Refining and Marketing (ChevronTexaco AMEA). But the Indonesian unit's original name, CPI, has remained. CPI operates the main oil province under the jungles of Central Sumatra.

Caltex, originally created as a 50-50 Chevron-Texaco JV operating in various parts of the world with emphasis on Asia, is fully owned by Chevron which has taken over Texaco. For many years, Indonesia has been its main oil production zone - though now its output in this country has fallen considerably.

CPI, which has had the largest operation of any IOC in Indonesia, has an expensive steam injection project at the Duri oilfield, but has experienced a drop in production mostly attributed to natural depletion. Chevron's total crude oil production in Indonesia has fallen to a 310,000-315,000 b/d range set for 2015, down from 785,000 b/d in 1997. Chevron is one of the main producers of natural gas in Indonesia.

CPI's onshore oilfields are within the Riau Province. Its main PSC has been renewed until 2021. In late 1996, CPI got better tax terms from the state. It was allowed to charge interest on loans associated with its oil producing fields and EOR system as an operating cost. As a result, CPI raised its output in 1997 to 785,000 b/d, from 760,000 b/d in 1996, and increased spending in that year to $400m. But production in the subsequent years fell steadily and CPI's annual E&P spending has been cut since 2000.

CPI has expanded the steam-flood system at Duri which boosted output in 2003 from a mere 23,000 b/d. But the entire Duri system and its satellite fields now have a combined output of 170,000 b/d. Output at its Minas field has been stabilised at over 90,000 b/d. CPI produces from many small oilfields. Its output fall is partly due to its loss in 2002 of the Central Plains Pekanbaru (CPP) production sharing contract (PSC).

CPI in August 2002 had to transfer CPP to a JV of Pertamina and the local Riau government called Bumi Siak Pusako (BSP). But the JV lacked the expertise or funds to maintain CPP's EOR system which CPI used. Output in the CPP block has decreased from 50,000 b/d to less than 20,000 b/d - down from 35,000 b/d in early 2003.

Theft of equipment and sporadic disputes have hampered CPP operations. At one time in August 2002 output fell to 6,000 b/d. BSP, which took over the CPP block on Aug.9 of that year after CPI had been at the helm for 31 years, said production had fallen due to frequent power supply interruptions. Brown-outs have been common-place in Indonesia.

Duri was found in 1941 and put on stream in 1958. Minas was found in 1944 and came on stream in the 1950s. More than 100 smaller oilfields were found in this area and put on stream. At their peak in 1973, their production averaged nearly 1m b/d. CPI has small gas fields, from which the output serves its production system and EOR units in the oilfields. Most of the hydrocarbons in CPI's area are reservoired in deltaic sandstones contained in anticlinal structures (see the background in omt11IndnsFieldsMar14-11).

COPYRIGHT 2015 Arab Press Service
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2015 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:APS Review Oil Market Trends
Geographic Code:9INDO
Date:Mar 23, 2015
Words:569
Previous Article:Indonesia - The Cepu Block JV With ExxonMobil.
Next Article:Indonesia - Part 3 - The Oil Exports & Imports.
Topics:

Terms of use | Privacy policy | Copyright © 2020 Farlex, Inc. | Feedback | For webmasters