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Vice President Policy Government and Public Affairs Chevron Yanto Sianipar (Photo : RambuEnergy/RK)

SKK Migas: Operator of Rokan Block must have adequate capital

JAKARTA ( – A number of oil and gas blocks production sharing contracts will expire in the period of 2019-2026, including Rokan Block, one of largest and ageing oil block in Riau province, currently operated by Chevron Pacific Indonesia (CPI). The operator of the block, once the existing contract expires, is yet to be determined.

On Wednesday, the Head of the Special Task Force for Upstream Oil and Gas Amien Sunaryadi said that the new operator of the Rokan block must have adequate capital in order to maintain its production level.

He said the block, whose existing contract will expire in 2021, requires an investment of around US$1.4 billion per year. “The operator must prepare the annual plan and set aside capital of US$1.4 billion per year. Who can assure such amount of money per annum?” Sunaryadi said at a media briefing on the sideline of the 42nd Indonesian Petroleum Association (IPA) conference in Jakarta on Wednesday (May 2).

Chevron has earlier signalled that it remains interested to extend its operatorship right to develop the Rokan Block. However, as for East Kalimantan block, known as EastKal block, the company decided to let it go on grounds that the block’s lifetime is approaching its end.

Rokan block is one of the key oil fields developed by Chevron in Riau. So far, most of the oil and gas produced by CPI is derived from block Rokan, in addition to Duri and Minas fields.

The block has also played an important role in achieving the production targets set by the government.

In the past, Chevron has implemented the enhanced oil recovery (EOR) technology to maintain its production and increase oil recovery from the old oil fields.

Meanwhile, Vice President Policy Government and Public Affairs Chevron Yanto Sianipar told reporters on the sideline of the IPA Convex that Chevron is now in the transition period before handing the EastKal block to the new operator, namely Pertamina.

Rokan Block is one of the major contributors to the country’s oil production, although it is trending down due to natural declining.

In the first quarter of 2018, Rokan’s production averaged around 212,000 barrels of oil per day (bopd), lower 5.48% from 224,300 bopd throughout last year, due to the block’s natural decline.

So far, CPI’s oil production mainly derived from Rokan block as well as Duri and Minas fields. Duri, which began its production in 1941, entered its 77th year of production this year. On the sideline of IPA Convex today, employees of CPI celebrated the 77th anniversary of Duri Field at the company’s booth.

Written by Roffie Kurniawan (Email:

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