Optimization of Old Wells Management In Efforts To Increase National Oil Production And Society Welfare Around The Old Wells: Preliminary Results

*Sudarmoyo ; sudarmoyo@upnyk.ac.id : 0811292543

*M. Irhas Effendi ; m_irhaseffendi@yahoo.com ; 0811268639*Sayoga Heru P ; heru@hatiesp175.com ; 0811252799

*Universitas Pembangunan Nasional “Veteran” YogyakartaJl SWK 104, Condongcatur, Depok, Yogyakarta 55283

Abstract

Indonesia has many old oil wells that still have potential to be reactivated and its presence is scattered in various oil fields throughout Indonesia. Currently, the management of old wells is implemented based on Minister of Energy and Mineral Resources Regulation no 1 of 2008 concerning the Guidelines for Oil Exploitation of Old Wells. The government has enacted the Working Procedures Guidelines in approving the application of local business entities to participate in management of old wells. Of course, with the existence of clearer regulation and supervision from the government especially in aspects of Working Health, Safety and Environment (HSE), the operation of old wells can running well and become the economic driver for local people. In fact, for nine years the regulation no 1/2008 implemented, oil production of old wells have not been able to increase as expected by government. In general, implementation of petroleum technology standards in old wells becomes uneconomical, therefore it is necessary to innovate appropriate technology with low cost and meet to HSE standards in petroleum industry. The purpose of study is optimize the management of old wells especially in an innovation of mobile drilling rig for reactivation old wells economical and also enlightenment of HSE, in an effort to increase the national oil production and society welfare around the old wells. This paper presents preliminary results of: field surveys, selection of potential old wells candidates, questionnaires of attitudes and perceptions of communities around old wells, models of mobile drilling rig for reactivation and maintenance.

Keywords: Innovation, Management, Mobile Drilling Rig, Society Welfare, Old Wells

1. INTRODUCTION

Indonesia has many old oil wells that still have the potential to be reactivated and its presence is scattered in various oil fields in the working area of PT. Pertamina EP (PEP), PT. Pertamina Upstream Energy (PHE) and Contractors of Cooperation Contracts (K3S) throughout Indonesia At this time, the drastically decreasing price of oil causes exploration and exploitation of oil to decline so that the impact is no increase in new reserves and Indonesia's oil production continues to decline sharply. Therefore, the current need to utilize old wells to help increase the oil production of Indonesia coupled with the existence of an innovation for the management of old wells in Indonesia to be economical and can provide multiple effects to society welfare around the old wells.

Several regulations have been changed in relation to the management of old wells. Among them is the Regulation of the Minister of Energy and Mineral Resources (ESDM) No. 1 of 2008 which replaces the Decree of the Minister of Mines and Energy No. 1285.K / 30 / M.PE / 1996 concerning the guidelines of petroleum mining concessions on old wells that are not suitable with the development of laws and regulations in the field of oil and gas.

According to the Regulation of the Minister of Energy and Mineral Resources No. 01 of 2008, the definition of

the old wells is oil wells drilled before 1970 and once produced and located on unprofitable fields in a working area bound by Cooperation Contracts and not put into operation by the Contractor. The government seeks to optimize petroleum production as well as old wells. The management of old wells is preferred by local entities such as KUD/BUMD, with the aim of improving the welfare of surrounding communities. Therefore, there needs to be an innovation to optimize the management of old wells. Innovation starts from management concept to technology used for more efficient, effective and economical management.

For 2003 until 2016, LPPM UPN "Veteran" Yogyakarta has been doing research & development about a Innovation of Appropriate drilling Rig Technology. This drilling rig has had operation license and tried to reactivate suspended wells in PT. PERTAMINA EP Asset 4 Field Cepu. Based on the evaluation of the use of this drilling rig, its is still lacking, therefore the researcher performs a design modification to be mobile drilling rig “ESP” (Efficient Professional Smart) for the manage the old wells more economically. This paper is the preliminary research results that is supported and funded from a Program of the Excellent Research for National Strategy of Indonesian Ministry Of Research, Technology, and Higher Education for 3 years.

The research road map is shown in Figure 1.

1

Figure 1. Research Roadmap

2. RESEARCH METHODOLOGY

Stages of PreparationLiterature Review of old wells, start from studies of regional geology ( Physiography and Stratigraphy), production permit stages to the review of technological developments for the management of old wells in Indonesia.

Stages of Appropriate Drilling RIG Design.Creating design of Mobile Drilling Rig “ESP” based on the literature reviews that have been done and based on the experience of researchers to obtain results that match to the characteristics of the old wells.

Stages of Field Survey. Conduct a survey in the field of an old well to get a picture of the current old well condition and geoelectric activities to get a picture of the subsurface structure.

Stages of Questionnaire Distributed questionnaires to communities around the field of old wells to get a picture of people's perceptions and attitudes towards old wells.

Stages of Evaluation and Validation of Old Wells Survey Results.

Evaluate done based on all old wells data obtained and then validated to the real conditions of old wells results of the field survey. Then perform an analysis of the selection of old wells candidates that have potential for be reactivated both subsurface and surface.

3. RESULTS AND DISCUSSION

Potential old wells candidate, The workflow of feasibility study of the old wells as shown Figure 2.Start from the Geoelectric work to obtain return a map of the depth structure and Oil Water Contact (OWC) estimates. By used the production map Dutch era can be known early production, end production, cumulative production, the depth of production and duration of production. Please note first, how to read the Dutch era production map in Figure 3 and production data from some old wells the results of this production map readings are shown in Table 1. This is the subsurface basis approach for selecting potential old wells candidate. It was then integrated with the field survey results to perform the old wells clustering analysis and so analysis to their technical data.

2

Figure 2. Stages of Feasibility Study the Old wells

Figure 3. Dutch Era Production Map and How to Read It

3

Table 1. Data of Oil Production the Result of Reading of Dutch Era Production Map

Regional Physiography. The geological map in Grobogan District needs to be observed from the regional geology of the North East Java Basin. Physiographically, the North East Java Basin includes the anticlinorium of Kendeng Zone in the south, the Blora hills, Cepu, Ngimbang; Randublatung Zone, and

Rembang Zone in the northern coastal area of Java. Geological discussions include stratigraphic problems, regional tectonic frameworks, geological structural patterns and potential hydrocarbons and cap rock systems in the area, shown in Figure 4.

Figure 4. Map of the Mature Oil Fields Potential

4

Regional Stratigraphy. The oldest rocks that are the bedrock in the North East Java Basin are metasedimen and frozen rocks (granite). This bedrock is estimated to

be Chalk-Jura/Pratersier. Above this Pratersier rock, the Tertiary sediment is not aligned (Mujiono et al, 2001) as shown in Figure 5.

Figure 5. General Stratigraphy of North East Java Basin (Mujiono dkk, 2001)

Old Wells Production Permit Procedure. The administrative procedures for the permit request of old well exploitation are currently regulated in the Minister of Energy and Mineral Resources Regulation No. 01 of 2008 on the Petroleum Mining Concession Manual from the Old Wells. The request cooperation to operation and production of old wells from KUD/ BUMD to government through three stages, namely:

1. The Stages of the permit application Approval 2. The Stages of Oil Producing Agreement, 3. The Implementation Stages of Oil Production.

Flow Chart of Petroleum Mining Permit Application of Old Wells Based on Ministerial Regulation 01/2008 is shown in Figure 6.

Figure 6. Flow Chart of Petroleum Mining Permit Application of Old Wells Based on Ministerial Regulation 01/2008

5

The Technology development Used in Old Wells. The Technology development that discussed here is started from a drilling rig technology that has been used to re-opening and production of old wells in Indonesia, as already used in many old wells in mature oil fields of Wonocolo field, Ledok field by the local community in around the oil fields, its from the trombos technique toward the rig appropriate used (Rig UTG) and finaly an unit of mobile rig “ESP”.

Currently, the drilling rig technology used to produce oil of old wells can be classified into two types,1. Semi conventional Technology2. Conventional TechnologyThe development of drilling rig technology used to oil produce of old wells future is shown in Figure 7.

Figure 7. Developments of Drilling Rig Technology Used To Oil Produce of Old Wells In Future

Design of Mobile Drilling Rig “ESP”. This design is the result of the innovation of researchers based on the potential of old wells but the drilling rig technology used is inadequate so the production of old wells less effective, efficient and economical. The results of design the mobile drilling rig “ESP” are shown in Figure 8

Field Survey of Old Wells. The survey conducted to find out the surfaces condition of the old wells and estimate the old wells profile based on existing data in the field. One example of the old wells documentation is shown in Figure 9.The geoelectric survey to determine the subsurface condition based on the geoelectric estimation around the old oil wells of Gabus Field, its obtained the resistivity range of 0.23 - 93.36 Ωm, with an estimated depth of 375 meters. Based on the value of the resistivity and existing lithologic conditions, the subsurface conditions can be interpreted as shown in Table 2.

Based on the resistivity columns from geoelectric survey results that have been converted to lithology and then be correlated between points, so we can know the spread of lithology in two dimensions both vertical and lateral, the correlation produces a subsurface geological cross section.

.Based on predicted data showing very small resistivity at depths between 80 meters to 90 meters, it can be interpreted that the possibility at that depth is the contact between oil and brine (OWC_1) shown in Figure 10.

The second reservoir layer is a shaly sand layer with a thickness more than 250 meters and it is suspected that at a depth between 230 meters to 240 meters there is contact between oil and brine (OWC_2) shown in Figure 11.

6

Figure 8. ESP Mobile Drilling Rig Design

Perceptions and Attitudes of the Society. The approach used here is to make a questionnaire to find out the perceptions and attitudes of the society around the old wells to the existence of old well production works.This is very important because the optimization of the management of old wells is done with the aim of improving the welfare of the society around the old wells. The results of the questionnaire are shown in Figure 12

Evaluation and Validation of Field Survey Results. In selecting candidates of old wells that will be reactivated and reproduced in the Gabus oil Field, it is necessary to determine an election criterion that considers the potential and surface condition of the old wells. There

are four main factors used to determine the priority old wells to be opened and reproduced

1. Potential AspectsGiven some subsurface data present in the Gabus

Field, a subsurface evaluation was performed based on available data to estimate the potential of hydrocarbons.

2. Aspects of OperationAccess to old well location or infrastructure such as

roads will make the mobilization of equipment, materials and oil transportation to be efficient. The location of the infrastructure that difficult to reach will make the cost of operation is very expensive.

7

Figure 9. Survey and Cross-Section of Old Well GBS#05, Gabus Field.

Figure 10. Top Structure of Upper Reservoir

Table 2. Value of Resistivity and LitologyResistivity,Ωm Lithologi

0 - 5 Clay with brackish water (salty)

5 - 10 Clay of sand

10 - 100 Sand clay

3. Aspects of Production If the old wells have seen oil from the surface, the hope that the old well can be reproduced with a simple equipment of production becomes larger

Figure 11. Top Structure of Lower Reservoir

4. Well Service Aspects (Reactivation & Repair) Whether the wellhead or wellbore is visible or not.

Old wells that have no a wellhead or wellbore that still buried will require a more expensive service / re-opening fee.

From the potential aspect based on the Dutch Era Map that has been converted (Table 1). If based on the high final production rate there are two wells GBS-10 and GBS-28 wells (indicated by yellow circle line) in Layer I, but if the result is integrated from the OWC map, the two wells are outside OWC, therefore at this first phase of reactivation be proposed an old well in the top structure (indicated by a green circle line). The integration of this evaluation is shown in Figure 14.

Considering from operation side, production side and services side, based on result of survey at Gabus Field then conducted planning of gathering system. (shown in Figure 13). The old wells to be reactivated based on the evaluation results are shown in Table 3.

Table 3. The Four of Old Wells to Be Reactivated

8

Station Well

Wells Distance to Gathering Station (m)

Surface Conditions

SP-3

GBS#011 37 Casing is not visible, there is a puddle of water

GBS#022 50 Casing is not visible, there is a puddle of water, there is oil seepage

GBS#024 42 Casing is not visible, there is a puddle of water

GBS#036 45 Casing is not visible, there is a puddle of water

Figure 12. Results of perception and attitude questionnaire of society around old wells in Gabus Field

4. CONCLUSION 1. Based on the results of the questionnaire about the

perception and attitude of the community around the old well of Gabus field, the community supports the management of old wells but they also want to engage or role with their expertise.

2. Based on data of subsurface and surface analysis results obtained 4 candidate wells are GBS-11, GBS-22, GBS-24 and GBS-36.

3. Based on the mobile ESP RIG design, it is expected to optimize the potential and economics of old wells spread in Indonesia become more attractive to support increase the national oil production and increase too the society welfare around the old wells.

9

AcknowledgementAppreciation goes to Indonesian Ministry Of Research, Technology, and Higher Education for their financial support for 3 years. This paper is preliminary research results from a Program of the Excelent Research for National Strategy (Pusnas) first year that is funded of Indonesian Ministry Of Research, Technology, and Higher Education.

Figure 13. Gathering system of old wells of Gabus Field.

Figure 14. Integration of data for evaluation of potential old wells

References

Amri, F. (2016), The relationship amongst energy consumption, foreign direct investment and output in developed and developing countries. Renewable and Sustainable Energy Reviews, 64, 694-702. Awan,G.A.(2013),Relationship between environment and sustainable economic development: A theoretical approach to environmental problem. International Journal of Asian Social Science, 3(3), 741-761.

Brennan MJ and Schwartz E.(1985), Evaluating Natural Resources Investments, Journal of Business, 58(2): 135-157. Chermak JM and Patrick RH, A Well-based Cost Function and The Economics of Exhaustible Resources : The Case of Natural Gas, Journal of Environemntal Economics and Management, 28:174-189. Dewan Energi Nasional (DEN).(2016), Outlook Energi Indonesia 2016. Jakarta: Sekretariat Jenderal Dewan Energi Nasional. Hadi.S, Achma H.S, Fitri.A, Imam.G (2017), The Effect of Energy Subsidy on the Environmental Quality

10

in Indonesia, International Journal of Energy Economics and Policy, 7(5), 245-249. Heru P.S, (2006), “Re-produksi Sumur-Sumur Tua di Wilayah Cepu dan Sekitarnya Sebagai Upaya Meningkatkan Produksi Minyak Nasional” Simposium dan Konggres IX IATMI , Jakarta.

Heru P.S, (2003), Dokumentasi Pengelolaan Sumur-sumur Tua Wilayah Cepu Dan Sekitarnya 2003-2008. I.G.A.Ketut.RH, Edi.A, Guntur.H, Tommy.L, Gunarto (2017), Relationship between Energy Consumption in International Market and Indonesia Prices Regulation, International Journal of Energy Economics and Policy, 7(5), 9-15. Kornelia. L (2017), Innovation - the role of trust, Serbian Journal of Management 12 (2) (2017) 331 - 344. Mudjiono et.al, (2001), Exploration of the North Madura Platform, Offshore East Java. Indonesia:

Prosiding Indonesia. Petrol. Assoc. 28th Ann. Conv, pp 707-726. Meyer, J.W. (2000), Globalization sources and effects on national states and societies. Jurnal of International Sociology, 15(2), 233-248. Ockwell, D.G. (2008), Energy and economic growth: Grounding our understanding in physical reality. Energy Policy, 36(12), 4600-4604. Shaari, S., Mohd, R., Hafizah, A., Rashid, I.M.A. (2012), Relationship among population, energy consumption and economic growth in Malaysia. The International Journal Social Science, 13(1), 39-45. Yusgiantoro,P, (2000), Ekonomi Energi: Teori dan Praktek, Jakarta : LP3ES ....(2008), Peraturan Menteri Energi dan Sumber Daya Mineral, nomor 01 tahun 2008 tentang pedoman pengusahaan pertambangan minyak bumi pada sumur tua.

11