Publications

Kodeco Energy Co., Ltd. was the operator of the West Madura Production Sharing Contract (PSC) in Indonesia, engaged in oil and natural gas exploration and exploitation. By any standards, Kodeco’s performance and results in the decade 1999-2009 must be deemed successful and indeed was, at the time, the envy of many of its peers in Indonesia. In terms of numbers, that success may be reported as: 25 exploration wells drilled with 80% success ratio, confirming 229MMBOE at a finding cost of 0.30 US$/BOE, development costs of <1.75$/BBL and lifting costs of <$3.50.BOE, leading to a 2000% increase in oil production, a 1000% increase in gas production and a 2000% increase in gross revenue. Success can be due to many things but whatever the scale of reference, one may be sure that ultimately it derives from the critical coming together of timing, funding, opportunity and work ethos. Without opportunity funding is wasted, and without funding opportunities are lost. Opportunities may come in many forms, from acquiring new acreage, introducing new technologies, to enhancing exploration, production, drilling and completion practices, improving interdepartmental communications and cooperation, and bottom line - to providing added value! This requires not only a vision but also a commitment that all be on the same page! The ultimate corporate goal has to trump departmental functional agendas, because success will be measured as the sum of the parts, and no one part should dominate or usurp this ultimate goal. For this to happen, success must be built from top down not bottom up. Knowing how different parts or functions work is all well and good, but to succeed demands a sound design to guide how the mix of skills, knowledge and experience can be welded together to blend both creative and analytical functions. The Kodeco experience, which covers the gamut of geological and geophysical applications and interpretation, to completion initiatives, to planning a drilling campaign, offers an interesting and informative case study