press release PT CPI is ready to create a safe and smooth handover

record significant progress, rokan block has drilled 55 wells

Pekanbaru, May 17, 2021 – Three months remaining to the handover of Rokan Block, fulfillment of termination and transition obligations by PT. Chevron Pacific Indonesia (PT CPI) continues to run systematically and structurally. Key aspects of the process showed significant progress in order to maintain the continuity of operations and production levels both before and after August 9.

"PT CPI continues to work hard to deliver a safe, reliable and smooth termination and transition process. Rokan Block is a significant and strategic asset for state and local revenues, community economy, and national energy security," said Albert Simanjuntak as Managing Director of Chevron IndoAsia Business Unit & President Director of PT CPI.

The main aspects of the termination process are termination checklists in accordance with government rules, asset reporting, and closed out project reporting. As for the transition process, the main aspects are the drilling program; information technology; data migration; contract management of goods and services; operational procedures and work permits; human resources; and others. "These key aspects showed significant progress, and expected to be completed before the handover of management later," said Albert.

For termination process, PT CPI has completed provisional PSC termination checklist document on February 25, 2021. Then asset reporting has reached 81 percent, where about 109 thousand assets have been completed physically and reported. While the closed-out project reporting reached 70 percent, or about 2,940 reports that have been completed.

As part of monitoring, there is currently a process of verification and validation (V&V) of data exploration and exploitation of Rokan Block by data and information technology center (Pusdatin) Ministry of ESDM and SKK Migas. The V&V process is carried out on approximately one million items of printed documents, magnetic and optical media, as well as rock samples. The process is expected to be completed end of May.

Drilling programs in the Rokan Block are continuing to maintain production levels. Since its inception at the end of December 2020, PT CPI has drilled 55 wells, including 11 conversion wells, and operating six drilling rigs and one conversion rig. The additional rig procurement process is underway to meet the drilling target of 192 wells in the Rokan Block by PT CPI and PT Pertamina Hulu Rokan (PHR) this year. "We continue to coordinate intensively with SKK Migas and PHR to ensure that the drilling program can run as expected. The collaboration is very solid because all parties have the same spirit and commitment," said Albert.

Organizational and Human Resources readiness

PT CPI also strives to ensure the readiness of its employees. "The strong performance of Rokan Block so far is inseparable from the human resources factor behind it, namely the employees with expertise, culture and work ethic that has been embedded. We are optimistic that they will be able to keep the performance of the Rokan Block and can contribute significantly to the new company," said Albert.

PT CPI has handed over all employment and organizational data to Pertamina / SKK Migas. Along with managing the Rokan Block, almost all of PT CPI’s employees will switch the employment status to the new operator. In preparing its employees, PT CPI has prepared organizational capabilities, held various communication forums and workshops, including transitional technical preparation, positive mental development to face the company changes, and financial management.