Reaching for the Earth's Heart: The Kola Project

On Saturday, May 4th, 2024, the Science Course Division of SPE ITS SC organized an event titled "Dive into Midstream & Downstream." The event delved deep into two crucial segments of the energy industry which provide participants with valuable insights into their significance, challenges, and innovations.Mr. Dimas Cameeo Wicaksono, Assistant Project Construction at PT Perusahaan Gas Negara, kickstarted the event by shedding light on midstream activities. These activities play a pivotal role in facilitating the interconnectedness of various aspects of the energy industry. Throughout his session, Mr. Dimas covered the transportation, storage, and distribution of oil and gas, the key components of midstream infrastructure, as well as the challenges during the midstream process. He explained the complex network of pipelines, tankers, and terminals that form the infrastructure for transporting hydrocarbons from extraction sites to refineries and distribution centers. Central to midstream operations are the various components of infrastructure that facilitate the processing and transportation of oil and gas. He provided an overview of crucial facilities such as pipelines, compressor stations, storage tanks, and terminals, as well as the protection and supporting facilities in LNG terminal infrastructure. While midstream activities are essential for ensuring the availability of energy resources, they are not without their challenges. Mr. Dimas also shed light on the various issues encountered during the midstream process, such as vandalism/illegal tapping by third parties. Following Dimas's insightful presentation, Mochammad Helmy Aditya, Process Commissioning Engineer at PT Kilang Pertamina Balikpapan, took the stage to deep dive into the downstream sector. This segment explored the current trends, challenges, and innovations shaping downstream operations. One area of focus lies within the refinery operations, particularly the Fluid Catalytic Cracking (FCC) and Residue Fluid Catalytic Cracking (RFCC) units. These units are pivotal in the conversion of heavy hydrocarbon feedstocks into lighter, higher-value products. Mr. Helmy explained about FCC and RFCC units which are vital components of modern refineries that facilitate the conversion of heavy residual oils and vacuum gas oils into valuable gasoline, diesel, and petrochemical feedstocks. These units employ catalytic cracking processes to break down large hydrocarbon molecules into smaller, more desirable products. He explored the unit integration within FCC-RFCC operations involving complex coordination between various sections, including reaction, separation, treating, and upgrading. Moreover, the quality parameters of feed and product streams in FCC-RFCC operations are critical for ensuring product performance, environmental compliance, and market acceptance. Parameters such as sulfur content, octane number, density, and aromatic content are closely monitored to meet regulatory requirements and customer specifications. For PT Kilang Pertamina Internasional, adherence to stringent quality standards is essential to maintain product integrity and competitiveness in the marketplace.Lastly, Mr. Helmy also highlights the environmental considerations that play a significant role in the operation of FCC-RFCC units, particularly in minimizing emissions, waste generation, and energy consumption. PT Kilang Pertamina Internasional prioritizes environmental stewardship by implementing advanced emission control technologies, optimizing energy efficiency, and promoting sustainable practices throughout its operations.Despite being held online, the event attracted many participants who were eager to expand their knowledge of midstream and downstream operations. Participants enthusiastically engaged with the speakers by actively asking questions and participating in discussions.As the sessions drew to a close, the Research and Information Division conducted a Petroquiz covering the materials and topics presented during the event. The quiz challenged participants' understanding of midstream and downstream concepts which provided an opportunity to reinforce their learning. After an intense competition, Christian Gunawan emerged as the winner who will earn the SPE Knowledgebook as a token of recognition. Written by: Arya Nugraha Aulia Rahman Yusup

Surabaya, SPE ITS SC – PT Elnusa Tbk (IDX: ELSA), an integrated energy services company under Pertamina’s Upstream Subholding, is strengthening its wireline services capabilities through a new technology access program developed in collaboration with SLB.Wireline services are specialized upstream oil and gas operations that use cable-deployed tools to collect subsurface data and perform various well interventions. These services are essential for evaluating reservoir conditions and supporting exploration and production activities.The initiative, called Technology Access Enablement and Delivery to Elnusa, forms part of the company’s 2026 transformation agenda themed “Rediscover Technology & Innovation Edge,” which emphasizes technology-driven service development and operational competitiveness.Through the collaboration, Elnusa will gain access to advanced open hole and cased hole wireline logging tools, enabling the company to expand its service portfolio and address increasingly complex subsurface challenges in upstream operations.Elnusa Director of Operations Andri Haribowo said the program is designed to broaden the scope of the company’s wireline services while strengthening internal capabilities through a structured capacity-building approach.“This collaboration not only opens access to advanced open hole tools, but also enhances Elnusa’s internal competencies and operational capacity. Previously, our services were primarily focused on cased hole logging. With this initiative, we are expanding into advanced open hole logging, creating a more comprehensive service portfolio for our customers,” he said.The cooperation framework will be implemented in phases to ensure effective technology transfer and sustainable capability development. In addition to gaining access to advanced tools, Elnusa aims to strengthen operational procedures and develop internal talent capable of independently operating the technology in the future.The program also marks a new phase of collaboration between Elnusa and PT Schlumberger Geophysics Nusantara, an affiliate of SLB. According to Armando Ballesteros, Director of PT Schlumberger Geophysics Nusantara, the partnership reflects a shared commitment to supporting technology transfer and competency development in Indonesia’s upstream services sector.Industry experts note that the adoption of advanced wireline technology is becoming increasingly important as oil and gas reservoirs grow more complex. Advanced subsurface evaluation tools allow operators to better understand reservoir characteristics, improving decision-making while reducing exploration and development risks.Strategic partnerships between local service providers and global technology companies are also seen as a key driver of innovation in the energy sector. Such collaborations can accelerate the adoption of advanced technologies while strengthening domestic technical capabilities.With the launch of the program’s initial phase, Elnusa is positioning itself as a technology-driven upstream service provider, aiming to enhance operational efficiency while supporting the development of Indonesia’s oil and gas industry.Writer: Aura Hammada

Early in 2024, there is a heightened risk of disruptions to the global oil supply due to the conflict in the Middle East —a region that supplies one-third of the world's seaborne oil trade— especially for oil flows that pass through the Suez Canal and the Red Sea. The International Energy Agency (IEA) has warned that the US and UK airstrikes on Houthi targets in Yemen in response to attacks on tankers in the Red Sea have expressed worries  about the potential for an escalation of the conflict. This important trade route handled almost 10% of the world's seaborne oil commerce in 2023, or about 7.2 million barrels per day (mb/d) of crude and oil products, as well as 8% of the world's trade in liquefied natural gas (LNG). The primary alternate shipping route around the Cape of Good Hope in Africa prolongs voyages by up to two weeks, which puts strain on international supply systems and raises the cost of freight and insurance.Stable oil prices despite escalating tensionsOil companies are taking a cautious stance in response to these escalating geopolitical tensions in the Middle East. Mike Sommers, CEO of the American Petroleum Institute, has expressed worries about the growing chance of the crisis intensifying and derailing oil supplies. And although Oil prices have stayed comparatively steady despite the tensions; some experts attribute this to the impact of economic considerations on oil prices. Thus far, the Houthi raids and other Red Sea disruptions—such as the diverting of supplies away from the Suez Canal—have not had a substantial effect on energy prices. Experts have cautioned that tensions in Iran, particularly around the Hormuz, may have an impact on oil prices and that the longer the violence in Gaza continues, the more likely it is that a regional crisis may break out. The closure of important trade routes, which would have previously led to a significant increase in energy prices, has not had the same effect due to the market's confidence in the availability of supply.Assessing Supply and DemandThe World Bank's Commodity Markets Outlook in October 2023 provided a preliminary assessment of the potential near-term implications of the conflict. In a "medium disruption" scenario, the global oil supply would be reduced by 2-4 million barrels per day, initially increasing oil prices by 21% to 35%. In a "large disruption" scenario, with a reduction of 5-10 million barrels per day, oil prices could increase by 56% to 75% initially. Additionally, The IEA has revised its forecast for oil demand upward, anticipating a larger increase in global oil demand in 2024. The IEA's forecast indicates a balanced oil market, with world oil demand expected to grow by 1.1 million barrels per day in 2024, and non-OPEC supply growth projected to reach 1.2 million barrels per day. This balanced outlook is significant, considering the potential impact of the geopolitical tensions and disruptions in the Red Sea on the global oil supply. The agency's assessment of a "comfortable" oil market in 2024, despite the disruptions in the Red Sea, reflects the resilience of the oil market due to factors such as ample oil and gas supply, weaker demand in certain countries, and the ability of tankers to find alternative routes to deliver oil and gas products. ConclusionWhile the present upheavals and wars aren't having a big effect on the world energy markets, the international community should still be prepared and pay close attention to the Middle East's ongoing volatility. The developing scenario in the region could result in further escalation and have an effect on the energy landscape. Thus, in 2024, it will still be imperative to keep an eye on Middle Eastern geopolitical developments and any potential effects they may have on the energy markets.Written By: Arya Nugraha Aulia Rahman YusupReferences:Oil prices steady despite Middle East tensions, but risks are rising | Oil and Gas News | Al JazeeraOil Market Report - January 2024 – Analysis - IEAConflict in Middle East Could Bring ‘Dual Shock’ to Global Commodity Markets (worldbank.org)Geopolitical tensions in Middle East bear risks for oil supplies — IEA - Business & Economy - TASSIEA's Birol predicts 'comfortable' oil market despite Red Sea disruption | Reuters

Enhancing the knowledge of SPE’s Board of Committee about materials used in the oil and gas industry, Company Visit Division SPE ITS SC conducted Inspect 3.0. The event was held in Pertamina Hulu Energi West Madura Offshore (PHE WMO) Lamongan Shorebase and involved a site visit, presentation, and discussion about the industry.Inspect 3.0 that has been conducted on 14th April is a series of company visit events and in this stewardship, visiting PHE WMO became the third company visit that has been conducted. PHE WMO is a subsidiary of PT Pertamina Hulu Energi (PHE), a subsidiary of PT Pertamina (Persero). PHE WMO primary focus is on exploration and production, but it also has a logistics base in Lamongan, which is crucial for the success of its operations. The PIC of the event Abdulah Abraham Abror explained, company visit this time provided an opportunity for the students to see and visit the shorebase/warehouse under oil and gas-based companies related to the core values of SPE ITS SC. “Through the visit and discussion with the company representative, the students gained insights into the oil and gas industry and how the company worked,” Abror added.More specifically, Abror said this event aims to provide knowledge about the materials used in the oil and gas industry, understand material management and handling processes, as well as introduce students to professions observed in the operating environment. “The event also discussed the end-to-end process of delivery material, including material management and how to handle it safely,” Abror explained.According to Abror, the event started with a safety induction by PHE WMO, followed by an introduction from SPE ITS SC. The opening was then given by PHE WMO, which provided an overview of the company and their role in the shorebase/warehouse. Representative from PHE WMO explained, shorebase management makes remote oil and gas operations more easily managed logistically from nearby ports. Furthermore, the role of shorebase as a support for offshore activities can take the form of a port, warehouse, field, or office.  In upstream oil and gas activities, starting from exploration, production, transportation to the refinery, and selling of oil or gas, shorebase is needed. Equipment such as casing and tubing require a long time to order, so supply chain management planning is needed.  After the introduction, the event proceeded to the site visit. The site visit involved observing the drilling equipment, such as drill bits, various sizes of drill pipes, christmas tree, and other equipments required for drilling process. A discussion of oil and gas from both parties was conducted to exchange knowledge and ideas. “During the visit, the students had the opportunity to ask questions and discuss with the representatives,” Abror added.Quoting one of the participants in the event, said Inspect 3.0 has been a great learning opportunity for me. He has gained valuable knowledge about the oil and gas industry, especially the materials and equipment used in the drilling process. "The visit to the Lamongan Shorebase has given me a real-life experience that cannot be gained through theory alone," he said.The event was successful in achieving its objectives, and the participants gained valuable insights into the oil and gas industry. The event was an excellent opportunity for the students to enhance their knowledge, and it was hoped that it would help them to become more competent professionals in the industry. “This event is expected to strengthen the relationship between SPE ITS SC and the oil and gas companies, including PHE WMO,” Abror concluded. By: Tyara Novia