Pede Lampaui Target, SKK Migas Calls Indonesian Oil And Gas Reserves Capai 543.67 MMBOE

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) reported that until the third quarter of 2023, Indonesia's oil and gas reserves had reached 543.67 million barrels of oil equivalent (MMBOE).

Meanwhile, the ratio of reimbursement ratio (RRR) has reached 84.6 percent of the target of 100 percent by the end of 2023.

Deputy for Exploration, Development and Management of the SKK Migas Working Area Benny Lubiantara said that with the addition of these reserves, he was confident that the addition of oil and gas reserves in 2023 would exceed the target.

He detailed that the addition of reserves of 543.67 MMBOE came from the approval of 23 proposals for the Plan of Development (POD) and the like with investment commitments obtained from 23 POD approvals and the like reaching around 9.82 billion US dollars or equivalent to Rp. 147.3 trillion.

Overall, Benny conveyed that the submission of POD and the like in 2023 reached 48 proposals with the overall potential for additional oil and gas reserves reaching around 960 MMBOE.

Benny explained that of the 48 proposed PODs and the like, 6 of them needed incentives so that the economy with the potential for additional oil and gas reserves reached around 366.81 MMBOE. Meanwhile, PODs and the like, which do not require incentives, have the potential to increase reserves, reaching around 593.79 MMBOE.

"We are currently discussing the incentives that can be given so that the field becomes economical and potential of 366.81 MMBOE can be unlocked and produced in the future. Paying attention to the Government's support for the upstream oil and gas industry, we are optimistic that the discussion of these incentives will get positive results," said Benny, Wednesday, October 18.

SKK Migas also projects that the achievement of RRR in 2023 can reach around 149.5 percent, so that in 2023 it will be 6 (six) consecutive year RRR achievements can be above 100 percent.

"On average, from 2018 to 2023, it is estimated that the average RRR achievement is around 163 percent, which shows that SKK Migas has succeeded in increasing the RRR by around 63 percent higher than the target," added Benny.

Based on SKK Migas data, RRR's achievements in the range from 2013 to 2017 were around 64 percent, with details of RRR 2013 of 74 percent, 2014 of 67 percent, 2015 of 60 percent, 2016 of 64 percent and 2017 of 55 percent. Since the transformation of SKK Migas was carried out in 2019, so until now the RRR achievement is above 100 percent.

This shows that the upstream oil and gas transformation that has been outlined in Indonesia Oil & Gas (IOG) 4.0 has had a positive impact in increasing the competitiveness of the national upstream oil and gas industry.