Jakarta - Energy and Mineral Resources (ESDM) Minister Sudirman Said asked oil and gas contractors (KKKS) to apply cost efficiency for exploration and exploitation activities. According to Sudirman, now would be the right momentum for efficiency since the international oil price is dropping.

“I call on to contractors to keep innovating when the oil price is low,” he told Tempo when observing Chevron oil field in Riau on Thursday, February 12, 2015.

Sudirman pointed out the cost efficiency initiated by Chevron. The report received by the ESDM ministry states that Chevron managed to push its cost recovery by 16 percent or US$400 million from the US$2.5 billion allocated last year. In addition, Chevron could achieve its production target by 98 percent.

Chevron Indonesia President Director Albert Simanjuntak said the production efficiency was conducted through a program called Lean Sygma initiated by Chevron’s managers. The program, which has been running since 2001, is a methodology of work process improvement to gain more efficient and faster results.

“Therefore, the productivity can be increased and the cost can be more efficient,” he said.

Currently Chevron has 79 oil fields with 12,400 welss in Riau. In 2015, the US-based  oil company invested US$500 million to build an oil gathering station and steam injection center at Area 13 of Duri field. In the area, Chevron is planning to construct 600 oil wells with a capacity of 14,000 barrels per day. The construction has progressed to 92 percent and is projected to complete by the end of this year.

Source : http://en.tempo.co