Abstract

Caltex Pacific Indonesia (CPI), a production sharing contractor of Pertamina on the Island of Sumatra, Indonesia, has 141 oil fields covering an area of 35,000 sq km. Current company production is 720,000 barrels oil per day. Zamrud Field is one of the oil fields in the Coastal Plain and Pekanbaru (CPP) Block whose contract will expire in August 2001, and is located within a conservation area.

This paper describes how CPI manages the development of oil and gas production in the Zamrud conservation area. This will benefit those involved in the CPP operations in the future. This project began with a "green" seismic project, "zero discharge" drilling, water management, and preservation of nature, and it continued through delivering oil to the sales point. The challenges come not only from internal issues in preserving the environment during oil field operations, but also from the cultivated surrounding areas that lead to growing pressure on the conservation area.

As global energy demand continues to grow, the oil and gas companies are expanding their exploration and production activities into some of the most sensitive and remote ecosystems. The Zamrud field is one of the sensitive ecosystems where CPI is exploring and producing oil and gas. The history of oil and gas development in sensitive tropical ecosystems has been marked by conflicts with environmentalists and isolated indigenous communities. CPI, however, in line with its vision, mission and values in preserving its area of operation has implemented viable techniques, technologies and innovative management approaches. CPI has also improved communications among companies, governments and local communities. Together, these initiatives have increased the potential to reduce the risks of oil and gas development.

High commitment to the environment, which is reflected in an integrated effort between the government, the company, the local people and other institutions, has resulted in successfully preserving the area. Application of the latest drilling and production technology has contributed to the success in maximizing oil production and at the same time preserving the environment.

This paper concludes that the way CPI manages exploration and production operations has proven to utilize good practices applicable for the future. These have implemented viable techniques to ensure that CPI preserves the environment while exploring for and developing hydrocarbons for the Government of Indonesia.