Oil Lifting Doesn't Reach Target In Semester I-2024, SKK Boss Migas: Due To Floods

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) reports that the realization of oil lifting in the first semester of 2024 reached 576,000 barrels per day (BOPD) or 91 percent of the 2024 APBN target, which is 635,000 BOPD.

This figure is still far from the expected target. Head of SKK Migas Dwi Soetjipto revealed that the factor causing the oil and gas lifting target has not been achieved in the first semester of 2024.

Dwi said that the flooding that occurred in several areas, especially in the Rokan Block, was the culprit for hampering drilling.

"In the first semester, we experienced flooding disturbances everywhere. So, practical drilling for more than one month cannot be done, so there are several delays in drilling activities," he said during the Press Conference on Upstream Migas Performance in Semester I 2024 in Jakarta, Friday, July 19.

With this problem, Dwi is pessimistic that oil and gas lifting will be achieved according to this year's target. Projection or outlook for oil lifting until the end of 2024 is 595,000 BOPD or 94 percent of the 2024 APBN target.

Not only that, said Dwi, his party also projects that the realization of gas lines until the end of the year will not reach the 2024 APBN target, namely 5,554 MMSCFD or 96 percent of the target, although it is 100 MMSCFD larger than the contractor's commitment.

"In this gas, the problem is in infrastructure and we hope that later (Tol) Batang-Cirebon will be able to be connected by the end of 2025. So, excess gas from East Java can be channeled to West Java," he said.

"Likewise, the pumping in Natuna, so that the excess in Natuna can be channeled to Batam. So, currently Natuna flows to Singapore, we hope that Batam will also absorb the excess gas later. So, the gas from central Sumatra can be channeled to support West Java," he added.

He also revealed that the realization of cost recovery in the first semester of 2024 reached 3.3 billion US dollars or still below the target of 3.47 billion US dollars. SKK Migas predicts cost recovery of 8.05 billion US dollars or below the target of 8.25 billion US dollars.

Furthermore, the realization of upstream oil and gas investment in the first semester of 2024 reached 5.6 billion US dollars or below the target of 7.43 billion US dollars. Dwi projects the realization of investment by the end of this year of 15.7 billion US dollars or below the target of 17.7 billion US dollars.