press release implementing digitalization – PT CPI operations are more competitive

safety performance and efficiency increase significantly

Industrial Revolution 4.0 affected many industries including oil and gas. PT. Chevron Pacific Indonesia (PT CPI) adopts digital technology to continuously drive safe, reliable and efficient operational activities. This strategic policy is able to drive competitive advantage in the midst of a very dynamic business situation.

The implementation of digital technology has a very significant impact. In 2020, for example, this technology successfully benefited PT CPI with the record value of more than US$ 100 million (around Rp 1.4 trillion). In addition, in the last three years, PT CPI has also been able to reduce the potential loss of oil production opportunity (LPO) by up to 40 percent.

"By implementing digitalization and supported by the functional asset of human resources in every aspect of operations, Chevron has successfully reaped the benefits from ‘big data is the new oil’ principles," said Albert Simanjuntak as Managing Director of Chevron IndoAsia Business Unit and President Director of PT CPI. "Data provides tremendous value when we process it into meaningful information to help us to make decisions quickly and appropriately," he added. Although there was no drilling program in 2019 and 2020, PT CPI was still able to exceed the annual production target with the lowest LPO record.

Albert explained that the implementation of digitalization in PT CPI provides at least four main benefits, namely improved safety performance; significant decrease of potential production loss/LPO; optimization of production facility capabilities; and efficiency improvements. For example, for safety performance in 2020, PT CPI recorded zero fatalities and serious injuries at work. 

“The implementation of digitalization further improves the performance of PT CPI, so that the contribution of oil and gas operations to the country and the people of Indonesia are more optimal. Various innovations are deployed in line with the company's values, namely high performance, in order to remain exceptional in various business situations," said Albert.

Digitalization in PT CPI is a long journey in terms of utilizing of technology and data to improve business performance. In 1997, there were about 50 production wells that were first installed supervisory control and data acquisition (SCADA) and connected into IT systems. SCADA installation in production wells continues to be improved. To date, more than 4,000 production wells have been connected so that data collection and monitoring of wells can be done in real time.

In 2000, PT CPI began to implement the concept of data foundation, data architecture, and data warehouse to manage and integrate data from various data sources. The main data sources are obtained from drilling, production, operation, maintenance, reservoir, geology, and others applications.

With this strong foundation, in 2016 PT CPI increased the utilization of digital technology widely and integrated by establishing an Integrated Optimization Decision Support Center (IODSC) in Minas, Siak. The facility utilizes "big data" that generates information used for quick and precise in decision making. This facility is like an airplane cockpit. From this facility, the activities of thousands of wells and equipment whose locations are scattered can be continuously monitored and optimized.

Daily data collected in a data warehouse can be correlated with other data and converted into a useful information. IODSC leverages digitalization transformation by storing knowledge from experts from various fields and implementing it as "factory automation" for well and equipment performance.

With this approach, a limited number of expert’s knowledge can be applied to all areas on a daily basis regularly and consistently to incoming data streams. Thus, the condition of wells and equipment that operating abnormally can be immediately identified. The information is then sent to the user based on the repair completion priority. This quick step can reduce the potential loss of oil production and improve the reliability of operations.

"Storing expert’s knowledge on digital devices has an additional benefit to maintain the continuity of knowledge from experts. Where the knowledge from these experts is still needed while the operation is running even though experienced experts must move to other jobs or enter retirement," said Ivan Susanto as Chevron Digital Innovation Acceleration Advisor.

Artificial Intelligence (AI) technology is utilized, among others, to automatically reorganize the well workover schedule by considering the lowest loss production opportunities resulting in more optimal and efficient rig movement; identification of pump performance that is no longer optimal; analysis and measurement of oil flow for optimal production; as well as remote and inter-integrated monitoring for fluid pressure conditions in oil wells. Utilization of technology like this is time and resources efficient when compared to the manual approach.

Recorded data can also be used to compile critical work prioritization and maintenance of wells and equipment. As an example of the result, the total cycle time schedule for routine rig maintenance and workover has decreased by more than 30 percent, making operating costs more efficient. "The mobilization of logistics supporting oil and gas operations can be controlled systematically and efficiently. The movement of the Company's operational vehicles can also be monitored from this IODSC facility," said Tomi Ihwanto as IODSC Manager.

In addition to supporting oil and gas production activities, PT CPI also applies digital technology in securing crude oil pipeline facilities. PT CPI utilizes drone technology and artificial intelligence to identify and segment objects around pipelines. If there are indications of suspicious activity, the drone can directly (in real time) transmit images and send a short message to the relevant team within PT CPI. This technology managed to reduce the number of illegal tapping in the pipelines.

It doesn't stop there. During the COVID-19 pandemic, PT CPI also utilized digital technology. So far, as many as 15 digital applications have been created and used in an effort to protect workers and suppress the potential spread of viruses in the Company's environment. As a result, the positivity rate was successfully suppressed below the WHO standard of 5 percent.

In addition to being used at PT CPI located in Riau, digital solutions that have been created are also utilized for Chevron's other operations in Jakarta and East Kalimantan. Various digital applications within the Company are designed and manufactured by Chevron's skilled personnel in Indonesia. The digital solution also gained recognition from Chevron's U.S. headquarters and became a learning material for Chevron's business units in other countries.