Incar Production 38,000 BOEPD, SKK Migas Target Reactivation 1,086 Idle Wells Next Year

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) and Cooperation Contract Contract Contract Contractors (KKKS) projects that by the end of 2022 they can complete the 800+ idle well reactivation activity through workover work and well services in 2022.

"The success of reactivating the idle well is estimated to provide additional oil production of 16,000 barrels of oil per day (BOEPD)," said Deputy Exploitation of SKK Migas Wahju Wibowo to the media, Wednesday, December 14.

Meanwhile, for 2023, Wahju continued, SKK Migas and KKKS have agreed to carry out more idle well reactivation activities which reach 1,086 idle wells with an estimated initial production of 38,000 BOEPD.

Wahju said that the increase in idle well reactivation activities was one of the agreements in the coordination meeting (Rakor) for the implementation evaluation and planning of idle wells in 2022-2023 which was organized by the SKK Migas Exploitation Planning Division for the second time and lasted for three days on December 12-14, 2022 in Bandung.

Wahju added that the coordination meeting aims to evaluate the reactivation performance of idle wells in 2022, update data collection on idle well status, and discuss issues and challenges of reactivation plans in 2023.

"Currently, of the approximately 10,000 wells that are included in the idle well criteria, SKK Migas has started carrying out reactivation activities aggressively since 2021, which has reached 662 wells increasing compared to the 2020 reactivation activity of 326 wells," he said.

Wahju said that at the 2022 work program & budget (WPnB) it was agreed to carry out idle well reactivation activities as many as 725 wells.

"We are grateful and express our gratitude to the KKKS for supporting hard and massive work efforts, as well as in ways that are out of the box so that the realization of idle well reactivation in 2022 until the end of the year is projected to reach more than 800 wells. We also appreciate the results of WP&B 2023 which has determined the number of idle well reactivation programs in 2023 which will reach 1,086 idle wells with an estimated initial production reaching 38,000 BOEPD, "said Wahju.

Wahju further said that the seriousness of SKK Migas to encourage increased oil production through idle reactivation well became one of the agendas in The 3rd International Convention on Indonesian Upstream Oil and Gas (ICIUOG) which was held in November 2022 in Bali. At this activity, the Head of Agreement (HoA) batch 1 was signed in collaboration with the strategic reactivation of Pertamina Regional 1 idle well with 6 Technology Providers.

As a follow-up to this coordination meeting, it is hoped that it can stimulate asset management optimization efforts so that idle ones can return to operation and provide additional production.

"We hope that the assets that sleep again can contribute, be it wells, fields, or production facilities to support efforts to increase national oil and gas production, thus making an optimal contribution in an effort to achieve oil and gas production targets by 2030, namely oil production of 1 million BOPD and gas 12 billion cubic feet per day (BSCFD)," concluded Wahju.

On the same occasion, SKK Expert Migas Ngatijan expressed his belief that the achievement of the 2022 idle well reactivation will increase in 2023 and in the years ahead.

Ngatijan expressed his hope that the idle well reactivation activity will reach the harvesting stage with higher additional production. The challenge is how SKK Migas and KKKS can get the right implementation strategy from other aspects that are supporting in idle well reactivation activities.

Ngatijan added that in 2024 SKK Migas is again targeting to be able to reactivate 1,000+ idle wells. Studies related to the potential of Idle Well are currently underway in several KKKS along with third parties (universities) with a total number of wells being audited reaching around 4,500 wells.

"Regarding the potential of idle wells, SKK Migas and KKKS cannot work alone, but must collaborate and synergize with other parties who have potential and abilities such as universities and technology providers," he concluded.