PHR Boss Speaks Candidly on Challenges of Developing Unconventional Oil and Gas Fields

PT Pertamina Hulu Rokan (PHR) has revealed a number of challenges in working on Unconventional Oil and Gas (MNK) wells in Indonesia, particularly in the Rokan Block, Riau. These challenges include the mastery of technology and the support of an industrial ecosystem that is currently unavailable domestically or in the Southeast Asian region. The MNK wells currently being developed by PHR are the Gulamo DET-1 and Kelok DET-1 wells in the Rokan Block. PHR President Director Muhammad Arifin explained that the characteristics of MNK are very different from the conventional oil reserves the company has managed so far. He noted that MNK development requires complex stages and global support to bring in specific technology and human resources. “Because MNK is new and we are the pioneers, the main challenge is that the ecosystem has not yet been formed in Indonesia. Because the ecosystem is not yet supportive, and even if we look at neighbouring countries in Southeast Asia, there are none, so we have to go to countries that are a bit further and more advanced to bring in technology and human resources,” he said. Arifin elaborated that the main challenge in MNK is that the oil is trapped in rocks, preventing it from flowing automatically when drilled. This condition forces the company to apply multi-stage fracturing and directional drilling technology to fracture the reservoir so that the sticky oil can be lifted to the surface. Beyond subsurface obstacles, the company faces increasingly difficult drilling locations, ranging from deep waters to areas in the middle of forests. The company is currently using countries that are well-established in this industry, such as China, the United States, and Canada, as primary benchmarks for developing the national MNK ecosystem. PHR has recorded MNK discoveries in the Gulamo and Kelok wells with a 2C contingent resource category reaching nearly 740 million barrels of oil equivalent. This figure is recorded as one of the largest oil field discoveries in Indonesia in the last ten years, projected to produce up to 50,000 barrels per day at its peak. Arifin added that the company hopes to receive approval for its plan of development in July, allowing for the drilling of the first appraisal well in December 2026.