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PHKT, KHAN to Proceed on Implementation of Pilot Project Decommissioning of Attaka Platforms

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KHAN Co., Ltd signed a Project Agreement with Pertamina Hulu Kalimantan Timur (PHKT), a subsidiary of the State Owned Enterprise (SOE) Pertamina, for the Decommissioning of the Attaka Platform located offshore in East Kalimantan, Indonesia.

PHKT General Manager, Djudjuwanto, described that the signing of this agreement was a continuation of the program since the initiation of the pilot project in July 2019.

“The signing of this Project Agreement underlines the detailed importance of dismantling the idle Attaka platforms, as well as giving legal assurance to both parties on how to proceed with the implementation of the project; including their transportation and sinking near the Bontang conservation area to become a supporting structure for coral reef growth, commonly called rig-to-reef.”

With the reef-to-rig reutilization of oil platforms and the new habitats and ecosystems it creates, fish populations are anticipated to grow exponentially. This growth in marine life as a result can further contribute to the prosperity of the area, as fishing activities and recreational diving tourism are bound to increase in parallel.

He hopes that the implementation of the pilot project will increase sustainability and become an example for future actions of decommissioning platforms in Indonesia.

Additionally, President Director of PT Pertamina Hulu Indonesia, which is the parent company of PHKT, Chalid Said Salim said that the rig to reef concept can also reduce rig decommissioning costs by 10-20 percent because it reduces land handling costs.

“This pilot project is a breakthrough in Indonesia’s upstream oil and gas industry which can later become a reference for decommissioning projects in the future, both in terms of planning, licensing, engineering, to implementation,” said Chalid.

KHAN Project Manager, Yoon Jong Nam expressed his appreciation for the collaboration in this project and that this project will provide the best results. “Hopefully, we can continue to maintain the good relationship and keep the collaboration in the future,” said JN Yoon.

KIORCC Co-Director, Cho Il-Hyung, wished both parties to uphold their end of the agreement, and hopes they stay in good spirits in the implementation stage.

“This pilot project is the first decommissioning project between Indonesia and Korea. It will be a valuable opportunity to gain knowledge and experience on decommissioning and reutilization of the offshore plant. I really appreciate the resilience of both governments and companies of Indonesia and Korea to finalize this project ”

The once-producing oil platform has been long abandoned due to uneconomic cost of lifting and has been plugged since 2015.

Korea-Indonesia Offshore Research Cooperation Center was appointed to coordinate the Pilot Project of Decommissioning of Attaka Platform. The project is funded by the South Korean Government through Grant Mechanism between the South Korean Government and Indonesian Government. The project was initiated in 2019 with the Implementation Agreement Signing, and was followed by the Project Agreement Signing in 2022. The initial plan was to remove three platforms, namely Attaka-I, Attaka-UA, and Attaka-EB. However, as the project developed, it was decided that Attaka-I will not yet be removed along with the other two platforms.