Opportunity Of Upstream Oil Business In Indonesia

Recoverable Oil reserves that are economically ‘stranded’ in numerous reservoirs situated around the producing area in the world potentially constitute the single largest source of proven hydrocarbon potential in the world is today. There is growing global recognition of the importance of stranded reserves as part of the solution for the world’s future energy requirements. It is estimated that only approximately 56% of all reserve will be found in the next 20 years to maintain the current global reserves base. The remaining 44% of new reserves required to be found, must therefore come from the known reserve base. The only way to found these reserves will be through the implementation of new technology and the adoption of step change practices by the upstream oil and gas industry in the development of existing, discovered assets.

Many oilfields in Indonesia are currently deemed uneconomic and abandoned following the extraction of less than 50% of in-place hydrocarbons. The two most significant reasons for the inability to recover these reserves are the ongoing utilization of inappropriate ‘traditional’ completion systems, which are not effectively matched to reservoir requirements, and the inability to deal with and manage high water production. Organizations with the technical capability and foresight to address these particular areas are better able to extract greater value from their assets.

The upstream oil and gas industry pressure to unlock stranded reserves in mature and marginal fields is increasing. The market is demanding it of operating companies and governments are moving to incentives businesses targeting these types of reserves.

To facilitate improved recoveries, industry players will be required to adopt “new thought” and pro-active approach to the integration and uptake of enabling technology. However, traditional oil and gas companies are struggling with the identification and application of appropriate technologies within the required cost parameters dictated by mature and marginal field environments.