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Asia Outlook

Saka Energi
oil & gas
Asia oil & gas
Indonesia oil & gas
BlackBerry UEM
technology

SAKA ENERGI INDONESIA

Power to Discover

Since last speaking to Saka Energi, the Company has engaged in numerous projects that is driving forward its market leading position within the industry

Writer: Phoebe Calver

Project Manager: Josh Hyland

When we last spoke with Saka Energi, it was riding off the success of a challenging and busy year at the Company where it acquired a production block from HESS and became the thriving operator of the block.

The transition of ownership of the production block runs well to this day, and during the same year the Company was also in the process of negotiating on several production sharing contracts with Indonesian multinational oil & gas companies.

“Our hard work on these projects was made worthwhile when we were able to farm in the aforementioned PSCs, and in 2016 we began farming in Bangkanai PSC,” explains Tumbur Parlindungan. “Following on from that period of success, 2017 was a particularly gratifying year for us as a Company.

“We were able to achieve a high level of activity within our productions, consistently complying to international safety standards, while also continuously maintaining a safe and productive workplace.

“In addition to that we have successfully managed to create cost-efficiency through the reduction of our operational expenses at every level, keeping us both competitive and effective within the industry.”

With thanks to its spirit and drive for exploration, Saka continues to develop its portfolio through exploration activity, development and production in a strategic and sustainable manner. Last year’s strategy was focused on the development of activities, with close attention to Pangkah PSC.

Continuous development

In the present day the Company is operating in industry conditions that are full of uncertainty, however, it continues to show signs of positive performance that are more than satisfactory.

Saka Energi’s achievements are thoroughly supported through its commitment to the continuous development of its assets, alongside its continued work on efficiency.

“Upon entering our seventh year of operation we are ready to embrace and face new challenges head on in 2018, while focusing on our upcoming drilling and development activities,” adds Parlindungan. “Each of those activities has been approved by government and will more importantly ensure that we are able to manage our OPEX game, staying strong and competitive in the industry.”

In recognition of its efforts in the industry, based on the SKK Migas grouping system, Saka is in the top 20 oil & gas companies in operation in Indonesia.

“Recently we have achieved the production target of approximately 50,000 barrels - at an increase of 36 percent -while also maintaining our OPEX at the right size,” states Parlindungan. “We have also proudly introduced the most efficient and effective drilling cost in the industry.

“We are one of very few Indonesian oil & gas companies that continuously performs exploration, discovery and development and as a national oil company we are incredibly proud of this achievement.”

Exploration and development

As previously mentioned the continued focus on efforts in exploration and development is enabling Saka Energi to seek new resources in oil & gas, which is especially apparent in eastern Indonesia.

“Each new target we set in terms of exploration is estimated with an accurate calculation,” explains Parlindungan. “In the medium-term we will focus on drilling with three rigs, consisting of a singular production well and two exploration wells in Pangkah block and South Sesulu block. Furthermore, we will develop Sidayu field and West Pangkah field in East Java.”

From an operational aspect, Saka has also been working tirelessly to improve its internal efficiencies. For the most part this effort has been implemented through the development of digital infrastructure and internal efficiency that enables support for every level of the business.

For the past year the vast majority of the Company’s activities used a digital system, and in addition to reducing costs the digital infrastructure enables it to improve its accuracy and speed in every operational practice.

“As well as those factors, we have adapted towards transformation,” adds Parlindungan. “We’ve adopted new technologies such as the BlackBerry Unified Endpoint Manager (UEM), which is the exciting result of a collaborative project between BlackBerry and PT PGAS Telekomunikasi Nusantara (PGASCOM).

“We now deploy BlackBerry UEM, which enables us to secure and manage all end-points within an organisation while enabling truly secure mobile working.

“Blackberry was the obvious choice for us as a trusted enterprise solution that would increase our operation efficiency, as well as the ability for management, staff and clients to securely share information from wherever they are situated.”

Now the Company can increase the convenience of mobile working and make the business secure, while also reducing the operational burden it has previously been faced with.

Parlindungan adds: “That way our transformation to the digital world will be secure and cost-effective, supporting our first mobile application, SAKA Smart, where our employees can easily access the intranet and business processes directly from their phone.”

Moving forward

With thanks to the technology upgrades, enhanced administrative systems and facility upgrades that were previously mentioned, the Company is able to remain highly competitive in a saturated and increasingly difficult industry.

“In addition to that we also maintain our good corporate governance and compliance to the regulations the prove to be a key factor of success,” explains Parlindungan. “Alongside our processes and technological advancements are our people, providing the key asset to our success over the years.

“It is imperative to this continued success that we continuously train them in order to provide them with the best knowledge and tools to instil progress at every level.”

At present the Company continues to grow and evolve and alongside increasing its staff, Saka continues to strive towards increasing its production capacity through the development of its assets domestically.

“We expect that this development will continue with production activities well into 2018,” concludes Parlindungan. “Moving forward we hope to repeat the successes seen during the past three years and look forward to our continued efforts in exploration and development.”