Publications

Unocal entered the deepwater portion of the Kutei Basin, offshore E. Kalimantan, Indonesia, in 1996. Now, Unocal is producing oil from one field, W. Seno, in deepwater and has eleven others in varying stages of appraisal and planned development. Perseverance, ingenuity, team work, and a close working relationship with the government are the keys to Unocal and its partners successes in the Kutei Basin.Perseverance in the exploration of a new basin has been critical. Only one well had been drilled in the deepwater portion of the Kutei Basin prior to Unocals entry. Since then, over 125 exploratory wildcat and appraisal wells have been drilled. After a pair of early discoveries, Unocal and partners drilled 16 consecutive, unsuccessful exploratory wells. However, the knowledge gained, and perseverance to continue, led to 10 of the next 30 wildcats being commercially viable discoveries.Ingenuity and team work have combined to greatly increase the probability of commercial success of the entire program by keeping costs extremely low. Unocals philosophy (often referred to as “SX Drilling) allows people the “freedom to fail.Failure to reach targets, make discoveries, or have a new technique not work as expected is not punished (but high quality work is expected both to minimize failures and to learn and advance after failures!). Teams comprised of people who are willing to continue to find new and better ways of working, have overlapping skill sets, and are prepared to communicate openly and continuously are highly efficient.BPMigas, and that agencys predecessors, have been important partners in the success in the deepwater Kutei Basin. BPMigas has been willing to allow Unocal to work “differently. Without this partnership, the efficiency gains from the Unocal team work and ingenuity would be completely lost. BPMigas should be applauded for their assistance in creating future oil and gas production in the deep water Kutei Basin!