Being The Opener At The Beginning Of The Year, SKK Migas-PHM Finds New Oil And Gas Reserves

Documentation - Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas)

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) together with the Cooperation Contract Contractor (KKKS) Pertamina Hulu Mahakam (PHM), a subsidiary of Pertamina Hulu Energi, succeeded in discovering new oil and gas reserves through drilling the Manpatu-1 exploration well. (MPT-1x) in the Mahakam Working Area (WK).

The MPT-1x well is a PHM exploration well which was drilled on October 20, 2021 and reached a depth of 4,188 mMD (meters measured depth). The well is targeted at the Mentawir Formation and the Tanjung Batu Formation. Structural Manpatu has P50 resources of 84.81 BCF (billion cubic feet) of gas and 2.4 MMBO (million barrels of oil).

Deputy Head of SKK Migas Fatar Yani Abdurrahman said, SKK Migas has approved the Layer Content Test (UKL) to be carried out at 2 intervals, namely the first test (DST-1) on the Mentawir Sandstone Formation (3,630 mMD depth), and the second test (DST-2) in the Tanjung Batu Sandstone Formation (2,240 mMD deep) on Monday, January 3, 2022, during his working visit at PHM.

"Currently UKL has been carried out on DST-1, where the results are proven to be able to release hydrocarbons in the form of oil and gas, with a measured rate of 600 BOPD (barrels of oil per day) and 15 MMSCFD (standard cubic feet per day) of gas. UKL operations are still ongoing to monitor the reservoir capacity of this part of the Mahakam Delta," said Fatar in his statement, Wednesday, January 5.

Fatar continued, with the discovery of oil and gas reserves in early 2022, his party is more optimistic to be able to provide good upstream oil and gas performance to meet the 2022 lifting target.

"This is a very good result at the beginning of 2022 as a new year's gift for the upstream oil and gas industry. We also had time to monitor, it looks like the gas found is very clean and lean. Even though the well is exploration, the incentive given by the government to PHM is starting to show real evidence after about 10 years no significant oil and gas reserves have been found in Mahakam WK," said Fatar.

The President Director of PHI-Regional 3 Kalimantan, Chalid Said Salim revealed that the discovery of gas from this exploration well is one of the achievements of the company's strategy in increasing reserves and maintaining oil and gas production through exploration and development (exploitation) drilling activities.

“PHI-Regional 3 Kalimantan has several strategies, namely: aggressive exploration activities to find new resources with new play concepts; optimization of baseline and development to increase production; expanding the synergy/borderless strategy in exploration, development and operation activities; optimization of costs through the OPTIMUS program and the application of technological innovations, methods, materials, which are more cost efficient; commercial portfolio optimization; and maintenance programs to maintain the reliability of production facilities in producing oil and gas for Indonesia,” explained Chalid.

As is known, in June 2021, PHM received a government approval letter regarding the fiscal incentive for Mahakam WK. This incentive approval was granted based on Government Regulation (PP) No. 27 of 2017 concerning Amendments to Government Regulation No. 79 of 2010 concerning Refundable Operational Costs and the Treatment of Income Tax in the Upstream Oil and Gas Business Sector. This incentive is the first time given to KKKS by the government referring to the PP.

"Furthermore, the MPT-1x Well will conduct UKL on DST-2, we continue to expect all activities to run smoothly and safely, and to be able to find oil and gas hydrocarbons again," concluded Fatar.