14 November 2022

Elnusa Also Supports PHM in Boost Gas Production from the Sisi Nubi Field

Jakarta, November 14, 2022 - PT Elnusa Tbk (ELNUSA, IDX:ELSA) A Leading Energy Service Company that is part of the Pertamina Upstream Subholding, continues to collaborate with other companies within the Pertamina Group. Most recently, Elnusa's slick performance has also supported PT Pertamina Hulu Mahakam (PHM) to increase gas production from the Sisi Nubi Offshore Field in the Mahakam Working Area (WK), East Kalimantan. It is noted that the Sisi Nubi Field once entered the declining phase of production to a level of 60 MMscfd (million standard cubic feet per day) in July 2020. However, as of October 20, 2022, gas production from the Sisi Nubi Field can be boosted again to the level of 160 MMscfd.

Elnusa President Director John Hisar Simamora said that Elnusa's collaboration with PHM in Mahakam WK began in August 2020 or when PHM's gas production level in Sisi Nubi was in a declining phase. Slowly but surely, Elnusa has played a role in PHM's efforts to increase gas production from the field. Especially with the development of the Rigless working mode (Without Rig) as an innovation to reduce well work costs. There are several jobs that Elnusa does on the Nubi side, especially using Elnusa's Hydraulic Workover Unit (HWU), ranging from Rigless side track preparation activities, Rigless Gravel Pack, and Well Service to Accommodation Work Barge.

John explained that Elnusa's main job at Sisi Nubi was Rigless Gravel Pack activities. Gravel Pack is a sand control method to prevent and stop the production of sand into the well. Usually, installing the Gravel Pack in the well is quite difficult so you have to use a rig to install it into the well. Because the equipment for the gravel pack itself is designed to be installed using a Rig with TDS (Top Drive System / 2 joint & 3 joint). "The Gravel Pack activity carried out at Sisi Nubi is the first Gravel Pack work within Pertamina which is carried out rigless or without using a rig, replaced with a Hydraulic Workover Unit," explained John.

Elnusa deployed the HWU EHR-7 fleet for the activities on the Nubi Side. Then reinforced with a workforce of 50 people to support operational activities in the field. It is calculated that there are about seven wells in the Sisi Nubi Offshore Field that have applied the Elnusa Rigless Gravel Pack method. HWU Elnusa's first contract with PHM was completed in February 2022, but has now been extended again until February 2024 due to the increasing need for Rigless operations to support PHM needs.

John explained, Elnusa had been implementing HWU technology for quite a long time, even since the era of Total E&P Indonesia managing the Mahakam WK. Especially for the Sisi Nubi area, Elnusa has just entered recently and can immediately help increase gas production from the field. Not only can it increase production, but the use of HWU in the Rigless Gravel Pack can also save costs and speed up the processing time. Elnusa even received an award from PHM for the Rigless Gravel Pack work because it was able to do the job the fastest for the first time at Pertamina, especially in the PHM area with the character of a multi-layered reservoir which is produced selectively and simultaneously/multizone.

"This Rigless Gravel Pack is a new job at Pertamina, especially at PHM, so that collaboration with PHM has been carried out from the start starting from the stages of engineering preparation, operational preparation, and operational implementation in the field to evaluation so that all work can run effectively with full 100% Internal Workforce. Country by sons and daughters of Indonesia. We hope that this good collaboration can continue to encourage efforts to synergize and increase oil and gas production from Pertamina and Indonesia," he explained.

John is also optimistic that the best practice from the Rigless Gravel Pack technology in the Sisi Nubi Offshore Field can also be applied to other oil and gas fields in Indonesia to achieve the target of 1 million bopd oil production (barrels of oil per day) and 12 billion standard gas production. cubic feet per day (bscfd) by 2030. "The work of the Rigless Gravel Pack on Sisi Nubi has shown Elnusa's excellent performance. We believe this technology is a new opportunity for Elnusa to open a wider market, starting from companies in the Pertamina group to outside Pertamina," said John.

Meanwhile, the Main Director of PT Pertamina Hulu Indonesia (PHI) as the Kalimantan Regional Subholding Upstream Pertamina and also the holding company of PHM, Chalid Said Salim expressed his appreciation to Elnusa for supporting the achievement of gas production of 160 MMscfd in the Sisi Nubi Field.

"PHI appreciates Elnusa's superior performance in supporting the work program set by the Company in the Mahakam WK, especially the Sisi Nubi Field, so that we have succeeded in increasing PHM oil and gas production which is very important for national energy security," said Chalid.

Chalid also conveyed the commitment of PHI and its subsidiaries and affiliates within Regional 3 Kalimantan to continue to invest in maintaining and increasing oil and gas production from assets managed through exploration and exploitation/development drilling activities. Therefore, Chalid considers it very important for PHI to have business support partners who can demonstrate superior performance in supporting PHI to achieve the set production targets.

"The increase in gas production at the Sisi Nubi Field is the result of a successful collaboration between Elnusa, PHM, and other service companies. We express our gratitude for the well-established cooperation between PHM, Elnusa, and other contractors, so that the implementation of PHM's oil and gas operations can run safely, reliably, compliant, environmentally friendly and sustainable in supporting Indonesia's oil and gas production," said Chalid.

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