SKK Migas saves US$84m in maintenance costs with new integrated system. A new data system that has been implemented in the country’s upstream oil and gas sector has saved US$84 million in contract service costs from this year’s maintenance budget, the upstream regulator has said.
The Integrated Operation Center (IOC) is a collection of software applications that work together to gather and integrate data in managing oil and gas operations.
The system comprises eight applications and subsystems: the Integrated Operation System for Production Dashboard, the Oil and Gas Lifting Dashboard, the Stock Management Dashboard, the Plant Information Management System, the Facility Maintenance and Project Monitoring system, the Vessel Tracking Information System, the Real-Time Drilling Operation and the Emergency Response Center.
The government said oil and gas contractors in the country had adopted the IOC this year to optimize their maintenance plans and schedules.
Dwi Soetjipto, the Upstream Oil and Gas Regulatory Task Force (SKK Migas) chairman, said on Tuesday that there was an urgent need to adopt new technologies in the sector.
“As the global demand for oil and gas is growing, the need for new technologies to ease upstream activities is increasing, especially [because of] the increased difficulties in operation and exploration activities,” he said.
The former boss of state-owned energy giant Pertamina added that the upstream oil and gas industry needed to transform and to be more creative in finding new lines of business in the current era.
“The upstream sector can’t be just about looking for and producing [oil], and must also keep up with demand from the energy market and the demand for cleaner energy,” he said on Tuesday in his speech at the Oil and Gas Production Facilities Forum (FFPM).
The FFPM is an annual event organised by the Oil and Gas Production Facilities Association and SKK Migas.
This year’s forum was held on July 9-11 at the PO Hotel in Semarang, and was themed “Innovation and Transformation of Oil and Gas Production Facilities in the Industry 4.0 Era”. The three-day forum involved a series of mini-events that included industry conferences, focus group discussions, business forums and an expo.
Energy and Mineral Resources Ministry secretary-general Ego Syahrial concurred with Dwi, saying that the industry was currently facing the daunting challenge of a consumption rate that was double the production rate.
“Our oil and gas reserves have stayed the same over the last decade, which is less than 0.5 percent and no more than 2 percent of total global reserves, respectively. Hence, we’re not a rich country,” said Syahrial.
He believed that, considering the situation, the industry needed to innovate in terms of adopting new technologies so it could continue to contribute positively toward sustaining the economy.
Syahrial added that the ministry was also working to develop an integrated oil and gas database for creating and maintaining a data inventory.
“Hence, in the future, investors will be able to access our oil and gas data from [wherever they are],” he said.
In addition, Syahrial said that the adoption of new technologies in the sector would help boost oil and gas exploration, especially in remote regions and for potential deepwater resources.
The government was also pushing for the use of locally produced materials in the industry to expand opportunities for local businesses to participate in oil and gas projects.
A recent International Energy Agency (IEA) report states that adopting digital technologies in both the upstream and downstream sectors could cut 10 to 20 percent off production costs and increase production by up to 5 percent. SKK Migas saves US$84m in maintenance costs with new integrated system (Suherdjoko, The Jakarta Post)