Rudi inaugurates Medco?s EOR project
Tuesday, January 8 2013 - 07:05 AM WIB
Energy and Mineral Resources Vice Minister Rudi Rubiandini has inaugurated the enhanced oil recovery (EOR) pilot project implemented by PT Medco E&P in its Kaji-Semoga field of Rimau Block in Rimau, South Sumatra province.
?Oil and gas industry is not a simple industry. Although we have been doing the business since 100 years ago, we cannot just continue to rely on the technology we?ve applied so far. Considering the current condition, instead of relying on the ordinary technology, we have to apply the extraordinary ones.
It used to be that oil was discovered with seismic and then drilled and produced. Now, it has to be taken out with a very unique way,? he said when addressing the ceremony to inaugurate the EOR project on Monday.
He cited as an example that Indonesia had a proven reserve of 3.7 billion barrels, of which about 1.7 billion barrels owned by Pertamina and the rest owned by the other production sharing contractors (PSC).
?So, where we can increase oil production? We can increase it through the oil reserves owned by Pertamina, and other foreign firms which hold the production sharing contracts to develop the oil reserves,? he added.
According to him, generally, the foreign PSC contractors have applied the technologies of secondary recovery, or even the tertiary recovery. The highest production among them is by Chevron,? said Rudi.
He noted that among the Indonesian private companies, Medco is the pioneer in implementing the EOR project. ?We highly appreciate Medco for what it has contributed to our efforts of increasing our national production of oil. For me, Medco is a pioneer. It has proven that not only the foreign firms can increase production through the EOR technology. A private firm like Medco can also do it well,? he said.
He expressed the hope that other Indonesian private companies would follow what Medco has pioneered in applying the EOR to raise oil production.
Through the EOR project, Medco hoped to increase oil production from Kaji-Semoga field by 1,200 barrels of oil per day (BOPD). It is expected that Medco will be able to emulate Chevron in terms of producing oil at higher level from the EOR application rather than from its primary fields.
Editing by Benget Besalicto Tnb.