Indonesia's Oil And Gas Reserves Increase By 521 Million Barrels

JAKARTA - The Oil and Gas Special Task Force (SKK Migas) stated that Indonesia's oil and gas reserves until September 2021 will increase by 521 million barrels, or 83.3 percent of the target for additional reserves of 625 million barrels in 2021.

"We calculate that in November the additional reserves will reach 134 percent of the target and in December it can reach 186 percent," said Deputy for Planning for the Special Oil and Gas Task Force (SKK Migas) Benny Lubiantara, Friday, October 9.

Not only that, Lubiantara emphasized that if the proposed incentive for oil-seeking contractors is approved by the government, the additional reserves could reach 240 percent of the target of 625 million barrels.

Those who need incentives are mainly the oil fields in East Kalimantan, which are 30-40 years old on average, but it is calculated that they will still make a large contribution from the addition of these reserves.

Pertamina Hulu East Kalimantan (PHKT) contributed 149.5 million barrels, the field which has been produced since the Dutch era and managed by Pertamina Hulu Sangasanga (PHSS) provided 273.8 million barrels.

Furthermore, the addition from Jindi South Jambi B Co amounted to 233.6 million barrels, and from Ophir Indonesia in Bangkanai-Lahai-North Barito-Central Kalimantan 150.9 million barrels. The total potential for additional oil and gas reserves that require incentives is 938 million barrels.

"Incentives are needed so that the oil and gas in the fields can be produced economically," he explained.

That way, Lubiantara added, the next step is to accelerate the production of these reserves to reach the target of 1 million barrels of oil per day and 12 billion cubic feet of gas per day by 2030.

The provision of incentives for the upstream oil and gas industry from 2020 to August 2021 has made a positive contribution to the country and increased the competitiveness of the national industry.

The implementation of upstream oil and gas incentives provides additional oil and gas field development through approval of POD (development plan) and the like and updating of reserves.

The positive impacts resulting from these incentives include the addition of oil and gas reserves of 465.5 million barrels and the addition of state revenues of around US$2.9 billion or Rp42 trillion.

Lubiantara also said that upstream oil and gas incentives encourage additional investment in drilling and production facilities of US$3.5 billion or around Rp50 trillion, which includes drilling 88 development wells, 15 injection wells, 32 reactivation wells, 1 step-out well and construction and installation of facilities. production.

"This incentive also increases the competitiveness of Indonesia's upstream oil and gas sector and the KKKS gets a revenue benefit of US$1.5 billion or around Rp. 21.75 trillion," said Lubiantara.