SKK Migas Reports All Exploration Wells Produce Hydrocarbon Findings

The performance of SKK Migas in the first quarter of 2023 in Jakarta, April 17, 2023. (Doc. SKK Migas)

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) noted that until the first quarter of 2023, all exploration wells completed by the Cooperation Contract Contract Contractor (KKKS) resulted in hydrocarbon discovery or recorded a 100 percent success ratio.

Deputy for Exploration of SKK Migas Working Area Development and Management Benny Lubiantara detailed the number of exploration well drilling activities of 10 wells consisting of 5 carry-over wells in 2022 and 5 exploration wells in 2023, which have completed taxing as many as 4 wells and in the tax process a total of 6 wells.

"SKK Migas and KKKS managed to record an increasing success ratio. If the success ratio for the discovery of exploration wells in 2021 is 55 percent, then in 2022 the success ratio will increase to 81 percent, and until the first quarter of 2023 it will successfully record a success ratio at 100 percent," explained Benny in his presentation on the performance of SKK Migas Quarter I 2023, quoted on Saturday, April 22.

He continued, the discovery of the 2023 exploration well came from the drilling of the NSO XLLL-1 well operated by PHE NSO in the form of gas discovery, a Rimbo-1 re-entry well operated by Sele Raya Belida with the discovery of gas, a SEM-1X well operated by PHE Ogan Komering with the discovery of Lofin-2 oil and re-entry wells operated by Citic Seram with the discovery of gas and condensate.

"The total resources of these discoveries reached more than 183 MMBOE based on the pre-drill promotion of RR P50," continued Benny.

Then investment in exploration well drilling in 2023 reached US$1.7 billion, an increase of 112 percent compared to the realization in 2022 as well as the largest exploration well investment since 2015.

"The number of exploration wells targeted for taxation in 2023 will reach 57 wells. The high investment in exploration wells shows that the upstream oil and gas potential in Indonesia is still prospective and attracts investors," said Benny.

Benny added that exploration well drilling activities are key to the discovery of new oil and gas reserves to support national oil and gas production in a sustainable manner because the need for oil and gas energy continues to increase every year.

"Massive and aggressive exploration is a pillar to achieve the national oil and gas production increase target by 2030, namely oil production of 1 million barrels per day (BOPD) and gas of 12 billion cubic feet per day (BSCFD)," he said.

As an implementation of one of the strategies to increase national oil and gas production, namely transformation resources to production, SKK Migas encourages every hydrocarbon discovery to be carried out immediately by a plan of development (POD). Until the first quarter of 2023, the achievement of the reservoir ratio (RR) reached 21 percent of the 100 percent RRR target.

"We are optimistic that the RRR target of 100 percent in 2023 can be realized, considering that the discussion of POD approval continues and the POD completion graph usually continues to increase. SKK Migas targets that by the end of 2023 the RRR achievement can be at 152 percent," explained Benny.

Benny's belief that the RRR target for 2023 can be realized is that from 2018 to 2022, SKK Migas will be able to realize the target of 100 percent RRR with details in 2018 of 106 percent, in 2019 354 percent, in 2020 it will be 102 percent, in 2021 it will be 116 percent and in 2022 it will be 156 percent.