Significance Impact of State and Local Government Engagements in Overcoming Spill Cases due to Illegal Tapping

Abstract

PT Chevron Pacific Indonesia (PT CPI) operates the Rokan block with 13,000 km pipeline length in Riau province. Oil theft attempts through illegal tapping is one of the challenges in operating Rokan block. PT CPI experienced 16 spill cases with a volume of 1,085.98 barrels in 2018-2019 as reported to The Government of Indonesia. The investigation using why tree method is conducted to identify the system level root causes described through tree branches. Five investigations in 2018-2019 reveal the repetitive root cause pattern. Significant root causes related to spill due to illegal tapping are key stakeholders’ engagement, surveillance resources, surveillance method and emergency response. Recommendations developed to these root causes create a comprehensive strategy to overcome spill due to illegal tapping. Comprehensive strategy by conducting continuous engagements to state government and local government, increasing personnel for surveillance resources, improving surveillance method and implementing thorough response has created significant impacts. Decreasing number of spill case in 2020 affects the revenue performance on financial aspect. Hiring local community for additional surveillance resources creates positive social impact for operation of PT CPI. Improved surveillance program shows sustained oil flow supporting the operation. Environmental impacts could be reduced by deploying response team immediately, recovering and cleaning the site according to regulation related to hazardous waste. Comprehensive strategy from PT CPI can be adopted by other Production Sharing Company (PSC) operators to maintain sustainability to deliver optimum production to meet the national target.