SKK Migas Successfully Holds Production Rate Reduction To 1.1 Percent

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) announced the growth of upstream oil and gas productivity at the end of 2023. Head of SKK Migas, Dwi Soetjipto, said that this achievement was reflected in several aspects of upstream oil and gas performance until the end of 2023.

The decline in oil production, which in 2022 reached 6.9 percent, has been reduced to 1.1 percent this year.

"For gas production, it is more encouraging, the decline rate last year was 2.5 percent, for this year production has succeeded in increasing by 1.3 percent," he said in a statement to the media, Monday, December 11.

One of the main factors in this achievement is the successful execution of a massive work program. The number of drillings reached 849 wells by the end of 2023, surpassing the previous year's figure of only 790 wells.

"Not only that, workover and well service activities also experienced a significant increase, reaching 35,849 activities out of 30,755 activities in the previous year," said Dwi.

Dwi also highlighted the increase in success in reactivation of wells and the addition of active oil and gas fields. SKK Migas managed to reactivate 1,142 wells in 2023, up from 968 wells in 2022. Meanwhile, active oil and gas fields reached 398, an increase from 392 fields in the previous year.

Not only increasing, SKK Migas also managed to reduce the frequency of unplanned shutdown in the field to 859 events from 908 incidents in 2022. In fact, the potential for oil production loss in the field fell significantly to 8,157 barrels of oil per day (BOPD) from 12,134 BOPD the previous year.

"This achievement is the result of good collaboration and cooperation between SKK Migas and Cooperation Contract Contractors (KKKS) in an effort to achieve the long-term target by 2030. Although there is still a difference between the long term plan and the current realization, this achievement is expected to be a good entry point to strengthen optimism in 2024," said Dwi.

Dwi emphasized that these achievements are an important basis for the national oil and gas industry, marking the commitment of SKK Migas in presenting a positive impact on the Indonesian energy sector.