The Oil and Gas Sector is Still Relevant in the Energy Transition Era

NUSA DUA - Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto said the oil and gas sector is still relevant during the energy transition process that the world is currently undertaking to achieve Net Zero Emissions. Dwi said that currently, gas plays a strategic role as transitional energy in supporting energy security towards Indonesia's economic growth.

"The challenge lies in how to sustainably increase production and reduce emissions at the same time," said Dwi in his remarks at the 4th International Convention on Indonesian Upstream Oil and Gas Industry 2023 (ICIUOG), Wednesday, September 20.

He added that the implementation of Indonesian Oil and Gas 4.0 since 2020 has shown positive signs of the impact of policies implemented by the government which will open up important investments as enablers such as flexibility and fiscal terms and taxation.

Dwi explained that to achieve the lifting target of 1 million barrels and 12 billion cubic feet of gas by 2030, stakeholders and oil and gas business actors need to carry out aggressive activities such as drilling wells.

"We need to drill more than 1,000 wells per year after 2025. For this year, the prospect of drilling development is 827 wells," continued Dwi.

He further added that investment growth has an important requirement, namely an attractive investment climate for investors.

Since 2020, the attractiveness of upstream oil and gas investment in Indonesia has increased, supported by government support through a more flexible fiscal system and other supports that reduce investment risks.

"However, several areas still require improvement, namely in the legal and contractual aspects as well as the discovery of giant reserves," concluded Dwi.