VICO Indonesia is one of three East Kalimantan gas producers, and produces around 1000 MMscf/d from four main fields; Badak, Nilam, Semberah and Mutiara (Fig.1&2). VICO has also been appointed as the Gas Co-ordinator and Pipeline Custodian for East Kalimantan. The main objective of Gas Co-ordination role is to ensure reliable gas supply to the Bontang LNG plant located approximately 60kms north of the Badak Camp.

As gas fields mature, there is a requirement for the compressor utilization in each field be optimized. The optimization performed has included in field optimization, integrated intra-field compressor utilization and optimization of the East Kalimantan pipeline network. The target of this optimization is to increase gas deliverability and reserves recovery whilst minimising capital investment. In the past each asset developed its own compression strategy focused on the best value for the asset. For the last 5 years this has been expanded to include the identification of synergies with other assets, i.e. by sharing or removing idle equipment. This year, as a further development, VICO incorporated the East Kalimantan joint operated pipeline network into the optimization to determine a strategy that would give the best value for all the East Kalimantan gas producers.

The multi disciplinary study team identified excess compression capacity in one of the assets. The Field Depletion Planning model (FPM), which integrates the subsurface work program with compression and pipeline optimization, was used to identify options for utilization of this excess capacity. Each option was reviewed from the technical and economical standpoint. Gas deliverability, reserves recovery and cost are the key review parameters. The team also considered the impact on the volume of future subsurface work programs and the operational consequences.

The study recommended the installation of a small pipeline system modification to allow gas from one field to be compressed at another field. The project not only gives higher gas deliverability and incremental reserves recovery, but also allows flexibility for major pipeline contingency plans. This project is economically justified and could also provide possible future compression utilization for the neighbouring gas producers.

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