Project Tool Allows for Continuous Improvements to Business Processes
Authors: Carpenter Chris 
Published: January 2023

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This article, written by JPT Technology Editor Chris Carpenter, contains highlights of paper SPE 205603, “Reserves and Resources Management: A Continuous Improvement of the Business Processes,” by Aen Nuril Hadi, Stephen Leonardo, and Khairul Anwar, Pertamina, et al. The paper has not been peer reviewed.

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To obtain standardized reserves and resources management of geographically diverse assets, Pertamina has launched a company guideline influenced by the SPE Petroleum Resources Management System (PRMS). A tool called the Project Box enables reserves analysts to map all projects, evaluate portfolios, and monitor progress of the project in the development and exploration phases. Furthermore, in line with a digitalization campaign, the Project Box, all reserves and resources data, and other strategic information are stored and maintained by in‑house software.

Introduction
As an Indonesian state‑owned energy company, Pertamina has managed more than 800 structures in Indonesia and overseas. In terms of structures, most of the company’s assets are associated with two islands, Sumatra and Java, which collectively contribute more than 75% of these assets. However, in terms of petroleum initial in place (PIIP), the island of Kalimantan is more significant. In terms of operatorship, assets that are scattered throughout the region are managed differently. More than 80% of these assets are operated by the company, while the rest is operated by other companies in the form of participating-interest division and unitization.
From 2011 to 2020, because of merger and acquisition activities, the PIIP value continuously increased. In 2018, the acquisition of the Mahakam block led to an addition to PIIP of almost 50%.

Subsurface-Asset Performance Heterogeneity
Several key performance parameters are used to evaluate the reserves and resource performance of all structures managed by the company. These parameters include the following:
- Reserves to production (RTP) indicates the reserves life span of a field or structure in years with the latest annual production. An abnormally high RTP may indicate either that the field or structure is just being put into production or that the reserves are subject to reevaluation.
- Maturity is related to project maturity relative to current cumulative production. A maturity close to 100% means that almost all projects are matured into production and nearly approaching end life of the structure or field.
- Withdrawal rate indicates the latest annual production performance relative to reserves. A low withdrawal rate may indicate either a petroleum-recovery optimization opportunity or that the reserves are subject to reevaluation.
- Reserves replacement ratio (RRR) indicates the annual additional reserves 1P relative to annual production. An RRR equivalent to 100% means that the additional reserves—namely, projects maturing through final investment decision (FID) approval—can make up the produced volume of petroleum in the respective year.
- Ultimate recovery factor (RF) indicates the expected recovery of a field or structure through the entire development process. While ultimate RF may seem to be greatly affected by subsurface aspects, it also can be improved through technology breakthroughs.