Introduction and Congratulations
“We’re here today to celebrate and appreciate Pertamina Hulu Rokan (PHR), a key player in Indonesia’s energy security. PHR has achieved two significant milestones: maintaining its position as Pertamina’s largest crude oil producer and, crucially, not only avoiding production decline after taking over from an American company but actually increasing output. This is a remarkable achievement, and we’re delighted to congratulate PHR, especially as it coincides with their anniversary. We’re joined by Mr. Rubi Muuliawan, the main director of PHR, originally from Jambi, to discuss these accomplishments.”
Maintaining and Increasing Production: The Key Factors
“Mr. Muuliawan, how has PHR, as a local company, managed to not only maintain but increase production after taking over from an American firm? What’s the key to this success?”
“The key lies in PHR’s deep understanding of its role as a national company responsible for contributing to Indonesia’s energy security. This awareness drives our continuous efforts to increase production. We’ve achieved this through extensive drilling activities and the application of proven technologies, many inherited from the Chevron era, such as steam flood and water flood. The Minas field, the largest waterflood field in Southeast Asia, and the Duri field, applying the world’s largest steam injection, are prime examples. The experience and resources acquired during the Chevron era, combined with our management expertise, have provided a solid foundation for continued growth in national production.”
Production Figures and Avoiding Decline
“When Chevron managed the Rokan working area, production stood at 159,000 barrels per day. It’s natural for fields to decline, and at that time, the decline rate was around 11% annually. Had that continued, production today would likely be around 110,000 barrels per day. However, through our efforts and the support of all stakeholders, we’ve not only halted the decline but have actually increased production to around 160,000 barrels per day. This isn’t an increase from 159,000 to 160,000, but a recovery from a potential 110,000. This was achieved through more aggressive field development and increased drilling activity compared to the previous operating mode.”
The Rokan Working Area and PHR’s Formation
“For those unfamiliar with the oil industry, especially in Hulu, let’s clarify the context. Pertamina Hulu Rokan was formed following a Presidential Decree that transferred the Rokan working area from Chevron Pacific Indonesia to Pertamina. PHR officially took over operations on August 9, 2021. The Rokan working area covers several districts and cities in mainland Riau. Since 2021, PHR has been part of Pertamina’s Regional 1, which encompasses all of Sumatra. Since PHR took over, the number of wells has significantly increased with the addition of 500 wells per year to maintain production.”
Addressing Land Acquisition and Well Maintenance
“With the addition of 500 new wells annually, how does PHR manage land acquisition?”
“We primarily utilize existing PHR land. For new wells, we engage with surrounding communities, acquire land from state-owned assets (BMN), or work in areas with existing palm oil plantations. We typically need around 10 hectares for each well pad, which must be clear of oil palm trees for operational safety and efficiency. Regarding well maintenance, while we continually drill new wells, we also conduct maintenance and rework on existing ones, averaging around 240 jobs annually. We also address damaged wells, with approximately 22,000 rig movements in and out for repair. Currently, we have around 82 rigs operating daily in PHR, managing a total of approximately 12,600 active wells.”
Oil Quality and Destination
“PHR manages a massive operation with 12,600 wells across seven districts. Where does all this oil go?”
“All production is channeled through a major trunk line to our large storage terminal in Dumai. From there, the oil is sent to four refineries. This involves an extensive pipeline network spanning tens of thousands of kilometers, with the main pipeline to Dumai alone being 500 km long.”
Mr. Muuliawan’s Background and Career Path
(This section is condensed for brevity, focusing on the key points)
Mr. Muuliawan shared his background, growing up in Jambi and developing a passion for the oil industry after observing the lifestyle of Pertamina employees. He pursued Petroleum Engineering at ITB and began his career with Caltex (later Chevron) in Duri, Riau. He held various positions, including assignments in Chevron’s US and Angola operations, gaining valuable international experience. This experience proved invaluable during the transition from Chevron to PHR.
Smooth Transition and Investment Continuity
“The transition from Chevron to PHR was remarkably smooth, wasn’t it?”
“Yes, it was. Pertamina allowed a two-year transition period, effectively three, allowing for a gradual integration of processes and culture. Importantly, Pertamina didn’t impose a complete overhaul of existing systems, recognizing the value of the existing team and their expertise. This continuity was a key factor in PHR’s success. Critically, investment in new wells continued even during the transition. This prevented the typical decline seen during such takeovers, ensuring that PHR started strong in 2021.”
PHR’s Core Values, Innovation, and Technology
“What are PHR’s core values, and how are you driving innovation?”
“Our core values are commitment to excellence, hard work, integrity, and continuous learning. We foster innovation by combining the talents of our 2,500-3,000 employees with over 40,000 partner workers. This diverse team allows us to develop new approaches to solve challenges. We also prioritize technology. Besides continuing proven methods like steam flood, we’re pioneering new technologies like unconventional oil production from limestone and shale rocks. We’ve drilled two pilot wells and, in collaboration with the government (SKK), have confirmed the viability of this approach. We’re also exploring chemical methods, like surfactant injection, to increase oil recovery. Digital innovation is also a key focus. Our Digital Innovation Center in Rumbai acts as a ‘war room,’ centralizing data from all 12,600 wells, enabling real-time monitoring and data-driven decision-making using AI and machine learning.”
Conclusion
“This has been incredibly insightful. Thank you, Mr. Muuliawan, for sharing PHR’s remarkable story of success. Congratulations again on your achievements and your anniversary.”
Key Changes Made:
- Structure and Flow: The information is organized into logical sections with clear transitions between topics.
- Conciseness: Redundant phrases and repetitions have been removed.
- Clarity: Phrasing has been improved for better understanding.
- Narrative: The interview is presented as a more coherent story.
- Focus: The focus is on the key achievements and the factors contributing to PHR’s success.