Afraid of Becoming an Importing Country, RI Boosts Development of Oil and Gas Fields

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) continues to boost the development of oil and natural gas (oil and gas) fields to meet increasing domestic demand.

Deputy Head of SKK Migas, Nanang Abdul Manaf said, if the development of oil and gas fields continues to be delayed, it is estimated that in 2042, Indonesia will become a net oil and gas importing country.

"To support the achievement of this target, SKK Migas is working with relevant stakeholders to take steps that can accelerate the realization of activities in the field," Nanang said in a media briefing, Wednesday, August 23.

He explained, besides seeking to accelerate the process, efforts were also made to have regulations that could increase the competitiveness of the upstream oil and gas industry and support incentives so that upstream oil and gas investment activities in Indonesia would be more attractive.

Nanang said, based on SKK Migas data, natural gas has dominated the results of exploration activities in Indonesia in the last decade.

"More than 50 percent of the exploration wells drilled discovered new gas reserves, even in 2022 the success ratio will reach 81 percent and until semester 1 of 2023 the success ratio will reach 100 percent," Nanang explained.

Meanwhile, 70 percent of the proposed total Plan of Development (PoD) is gas field development.

"Referring to the BP Outlook 2021, Indonesia's reserves to produce gas are two times larger than petroleum. Gas potential must be produced immediately so that concerns about the potential to become a net gas importer in 2042 do not occur, and gas production continues to increase to meet domestic needs so that it can support the achievement of the target of net emission zero in 2060," he explained.

In terms of gas distribution, the allocation of domestic gas has also continued to increase in the last 10 years. In fact, since 2012, the portion of gas distribution for the domestic sector has been greater than the allocation for exports.

As of June 2023, national gas production allocated for domestic this year has reached 3,636.82 BBTUD. Meanwhile, the portion of gas exported reached 1,960.71 BBTUD.

"The government is committed to continuing to meet domestic needs, where domestic gas distribution has now reached 65 percent," concluded Nanang.