CNPC has stakes in eight oil and gas blocks in Indonesia, and is the operator of all the blocks, with the exception of SP. The company also provides oilfield services in the country.
Oil and Gas Operations
Oilfield Services & Engineering
CNPC has stakes in 8 oil and gas blocks in Indonesia - Jabung, Tuban, Salawati Basin, Salawati Island, Bangko, SP and South Jambi B and Madura. CNPC is the operator of all the blocks, with the exception of SP. Jabung, Tuban, Basin, Salawati Island and South Jambi B are production blocks, and South Jambi B mainly produces natural gas.
Ever since CNPC took over these blocks, our progressive exploration and development has resulted in a series of hydrocarbon discoveries in the major mature zones.
In 2004, a high-yield oil and gas flow was obtained in exploration well West Betara-1 on the West Betara structure of Block Jabung with a daily output of 761 barrels of oil and 440,000 cubic meters of natural gas. In addition, a daily output of 4,251 barrels of oil was achieved in exploration well Southwest Betara-1 on the Southwest Betara structure. As a result, these two structures were listed among the most important exploration discoveries in Indonesia in 2004.
In 2006, new oil and gas discoveries were made in Block Jabung, Bangko and SP, and commercial oil and gas flows were achieved from 4 exploration wells. A production test resulted in a daily output of 2,846 barrels of oil and gas condensate and 2,790 cubic meters of natural gas from major appraisal well West Betara-3 in Block Jabung. Appraisal well RM-2 in Block SP obtained a daily commercial oil and gas flow output of 431 barrels of oil and 27,500 cubic meters of natural gas. In a production test, preliminary prospecting well Kenong-1 in Block Bangko produced 380,000 cubic meters of natural gas and 289 barrels of gas condensate daily.
In 2007, our oil production from the Indonesian projects maintained steady growth, reaching twice the volume of 2002.
In 2008, a number of high-yield reservoirs were discovered in Block Jabung. By drilling well Marmo-1, we discovered three new hydrocarbon-bearing layers, all yielding commercial oil and gas flows during formation test.
In 2009, we made a number of oil/gas discoveries in the Jabung Block. Formation testing in well Marmo-1 resulted in a daily yield of 2,850 barrels. Drilling of well Marmo-2 and Marmo-3 led to the discovery of new reservoirs, and formation testing of the two wells yielded 230 barrels of gas condensate and 200,000 cubic meters of natural gas every day.
In 2010, we made new discoveries in progressive exploration, with an exploration well success rate of 67%, the highest in Indonesia. And 21 wells were completed, compared to eight in 2002, with efficiency improved 1.6 times.
2012 marks the tenth year of CNPC's oil and gas operations in Indonesia. We acquired all of Devon Energy's assets and activities in Indonesia’s six blocks and operated eight E&P projects in the country. In 2012, PetroChina International (Indonesia) became the seventh-largest oil company in Indonesia, with its oil output more than 2.38 times of that in 2002.
Development of mature oilfields
Onshore oilfields in Indonesia have been exploited for several decades, and currently face challenges such as quickly declining production. By using our unique EOR technologies and production stimulation expertise, we have successfully tackled these challenges and increased oilfield production.
Since 2002, the application of reservoir fine description and composite management of mature oilfields has resulted in improved performance. In 2010, the oil and gas production of our Indonesian blocks ranked the seventh in Indonesia, 1.6 times higher than in 2002.
CNPC provides oilfield services in geophysical prospecting, well drilling and workover, logging, perforation and formation testing in Indonesia. We have accomplished seismic data acquisition projects for EXPAN, BUNYU and PERTAMINA, as well as seismic data processing projects for TROPIK ENERGI. We have signed drilling contracts with PT.CALTEX PA CIFIC INDONESIA and PERTAMINA. We also transfer technologies and expertise into Indonesian oil & gas fields. In our operation, advanced techniques such as horizontal drilling, unbalanced drilling, air drilling, and compound perforation, are applied to meet the requirements of our service clients.
BGP, a wholly owned subsidiary of CNPC, takes the advantage of its operational experience in different terrains including mountainous areas, shallow seas, and tidal areas to provide high quality geophysical prospecting services. It has set up its geophysical interpretation center in Jakarta to provide support services.
CNPC Daqing Drilling Engineering Company provides a whole set of EOR solutions, based on its 50 years of development experience. They optimize the well pattern in mature oilfields, and apply compound perforating technologies where necessary, thus achieving excellent technological outcomes and ultimately, client satisfaction.
Bohai Drilling Engineering Company, a wholly owned subsidiary of CNPC, actively conducts technical exchange with oil companies in Indonesia. They come to understand client requirements, continuously improve the application of technology, and through highly efficient and "zero-accident" safe operation, attain excellent reviews.
CNPC Greatwall Drilling Company closely follows advanced technologies in the oil industry. It has established a drilling fluid laboratory in Indonesia to provide solutions for technical challenges encountered in its operations. In order to swiftly put the laboratory technical innovations into use, they have established a longterm cooperative partnership with the National Laboratory of the Indonesian Ministry of Energy and Mineral Resources (LEMIGAS). The two sides each contribute their best skills and knowledge and undertake technical research through regular communication. They have achieved effective results in their research on drilling fluids. The KCL-polyols invented with the participation of LEMIGAS has reduced damage to reservoir zones caused by drilling fluids and have provided the technical certainty for drilling operations in the Jabung and Salawati Blocks.
In 2012, we won a 3D seismic contract for Total's project in Indonesia.
CNPC concerns a lot about safety and environmental protection, and we put this concept into action. We won a Safety Award from Indonesia's Ministry of Energy owing to our no-accident operation in Salawati Basin for 2,500,000 consecutive hours. In February 2007, we were granted an Environmental Protection Award by Jambi Province. In 2009, we won two Safety and Environment Awards from Indonesia's Ministry of Manpower and Transmigration, and East Java Province respectively, owing to our no-accident operation in EAST JAVA. In February 2010, we were granted an award for Achievement in Work Safety and Health Program (Zero Accident) by the Governor of East Java Province. In October 2012, the company was awarded the “Ten Years' Excellent Operation Prize” by the state upstream oil and gas regulator BPMIGAS.
We consider harmonious partnerships and active participation with our neighboring communities a crucial part of our responsibility. We have set up communication mechanisms, aiming to reach out and be part of our host communities. In our operations, we always provide support in line with local and national community development plans.
From 2002 to 2012, our projects in Indonesia has provided more than 3,300 direct and nearly 5,000 indirect job opportunities for local people, and contributed more than USD 7 billion to the Indonesian Government in terms of entitlements and tax payments. The company’s donations to education and infrastructural construction, and other public welfare initiatives have helped improve the education and medical conditions in neighbouring communities and facilitated local socio-economic development. For these efforts, PetroChina International (Indonesia) has won the respect and recognition of local people and the government.
Feb. 2009 PetroChina, a holding company of CNPC, acquired 80% interests in the Madura Block.
Sept. 23, 2006 TBA offshore field in Block Salawati Island was put into development.
Aug. 18, 2005 The LPG plant in Jabung Block went operational, becoming the second largest natural gas processing plant in Indonesia.
Jan. 20, 2005 CNPC received the 25% interests of Bangko Block from El Paso.
Jul. 02, 2004 The first oil well in Sukowati Oilfied in Block Tuban went into operation.
Apr. 24, 2003 CNPC acquired 30% equity of Amerada Hess Indonesia Holdings Ltd. in Block Jabung, and CNPC's interest in this block reached to 45%.
Oct. 30, 2002 CNPC acquired 45% equity of Mineral Resources International Inc. (Malaysia) in Block SP.
Apr. 10, 2002 CNPC acquired Devon Energy's share of six blocks in Indonesia.