The three pillars of main activity on oil and gas sectors are the ABG (Academy (university), Business entity (company), and the Government). A synergism of these three pillars should be strengthening in building a sustainable growth of oil and gas business. The relationship could be in any activities amongst them, such as the universities are supporting the intake of workforces and well trained developing people for the industry (company). The companies accept the graduated students and give a sponsorship for the research in the university. The government produces the rules for business and support funds for the university. As a professional organization IATMI (Society of Indonesia Petroleum Engineers) tried to stimulate a better relationship among the A-B-G. IATMI had continuous linked activities between the universities and the companies which is a bridging program for graduate students to have information of job fair, scholarship, or research grants. The IATMI also support the company to have a better access for new research and technology development in the universities, socialization of new regulations and policies from the government, etc. This paper reviews the role of IATMI as an experienced professional organization in Indonesia’s oil gas sectors. The discussion will focus on how important of a synergism among the ABG and the results of the IATMI initiatives in last decade supporting and stimulating the business of oil and gas in Indonesia.

VICO Indonesia is the operator of the Sanga-Sanga Production Sharing Contract located onshore of the Mahakam delta, East Kalimantan, Indonesia since 1968. Over 40 years the PSC has produced 70% of the estimated original gas in place, supporting Bontang LNG plant. VICO has 7 producing fields, in a complex fluvial deltaic deposition with more than 2700 gas and oil reservoir, mixed of depletion and water drive mechanism reservoir. VICO production peaked at 1.5 BSCFD in 1995 then start to decline. Current production is in the range 385 MMSCFD of gas and 14500 BOPD of liquids from 400 active wells. In a situation of 46% annual base decline, to fulfill domestic and LNG contractual commitments and to optimize reserve recovery, VICO generated and implemented an integrated and aggressive work program called "Renewal Plan". This is an integrated approach between reservoir management and technology application; it provides a detail road map to onward development strategy. The main elements of the plan are extensive development drilling activities (conventional drilling, grid base drilling, cluster well drilling), low permeability reservoir optimization (horizontal well, hydraulic fracturing, radial drilling), production optimization (deliquification technique, permanent coil tubing gas lift for monobore type) and facilities optimization (reducing abandonment pressure by additional compression installation, wellhead compressor, debottlenecking). Technology application in drilling, completions, production and facilities optimization combine with synergy from multidisciplinary team have resulted in maintaining VICO production decline in the range of 5% (vs 46% base decline), allowing promoting and partially replacing the reserves at an attractive development cost, even after 40 years production life. This paper will describe the successful implementation of renewal plan in VICO Indonesia, which proved to be an efficient example of better reservoir management for optimum development of mature assets.

Wellbore optimization is one of the key factors in field management and development of multilayer deltaic reservoirs having a wide range of reservoir properties and size. This optimization will affect current field deliverability and the number of wells required to be drilled in the future to meet gas demand. Tubing size is one of the factors that can be used for wellbore optimization. This paper presents VICO Indonesia's experience in optimizing tubing restricted wells in Nilam Field. The results of a VICO Tubing Size Optimization Study showed that larger tubing size does not significantly affect reserve recovery in high kh (permeability-thickness) reservoirs. All wells were evaluated to determine which wells were tubing restricted and candidates for optimization. The optimization work included tubing change-out with a rig and rigless wireline intervention. Nodal Analysis and DEPLAN, a Field Depletion Planning model developed by VICO Indonesia, were used as tools to identify the candidate wells and estimate the benefits of the production optimization. The 1996 optimization program resulted in 87 MMSCFD gas deliverability increase. This increase will result in the two year deferral of three drilling wells and eliminating two drilling wells for deliverability during the field life. This paper discusses not only the obvious benefits of increasing production, but also the effects on reservoir depletion planning and ultimate recovery. Introduction VICO Indonesia, the operator of Sanga-Sanga Block in East Kalimantan - Indonesia (Fig. 1), has four major gas fields that produce an average of 1.5 BSCFD. The gas is transported via pipeline to the Bontang Facility and converted to LNG for distribution and sale in the Asia Pacific Rim. Nilam Field is one of VICO's main gas producers. The field consists of more than 300 unique reservoirs that have permeability ranges from less than 1 md to greater than 1,500 md. Most reservoirs are volumetric depletion drive. A typical well will have as many as 20 reservoirs in each well, distributed over a 5,000 foot interval. Currently, there are 168, wells most of which are completed as dual completions (Fig. 2). They range in depth from 7,000 to 14,000 ft. The Nilam Field has three gathering system pressures, high (950 psig), medium (375 psig), and low (150 psig). A well typically begins producing into the high pressure system, then moves to the medium pressure system and finally to the low pressure system as the reservoir pressure depletes. Once the well has depleted, it is then worked over to different zones and the cycle starts over again. In such numerous widely separated reservoirs, wellbore optimization is very important. The objective of the wellbore optimization is to optimize production as well as reserve recovery of each well. The optimization work can have significant impact on field deliverability and the required work program to meet the gas demand. In the Sanga-Sanga Block, the effect of increasing gas production is complex. This is because that increasing gas production does not directly affect the cash flow to the company. The amount of gas that can be sold is restricted by the processing capacities of the liquefying natural gas plant (LNG plant). Under specific gas sales commitments, the demand of the LNG plant is dictated by the long term LNG contracts. Therefore, increasing gas production from production optimization does not directly increase the cash flow to the company. The production optimization can only be justified in such an economic environment by reducing the future expenditures required to meet demand and maximizing reserves recovery from the field. P. 85^