SKK Migas Will Reactivate 725 Old Wells To Meet Production Of 1 Million Barrels Of Oil In 2030, Observers Respond Positively

Illustration. (Photo: Doc. Antara)

JAKARTA - The Special Task Force for Upstream Oil and Gas (SKK Migas) stated that it would reactivate as many as 725 wells from oil and gas Cooperation Contract Contractors (KKKS).

Head of SKK Migas, Dwi Soetjipto said this was done to achieve the target of 1 million barrels of oil and 12 BSCFD of gas by 2030.

In response to this, Energy Watch Observer and Executive Director, Mamit Setiawan views this as a positive step in optimizing the potential of wells carried out by SKK Migas and Pertamina considering that old wells still have considerable potential.

"Our oil and gas potential is still quite large, but it does require a large amount of money and technology to manage the field," said Mamit to VOI, Monday, February 7.

Mamit revealed that in the auction conducted by SKK Migas, the offered Working Area (WK) did not receive enough interest so that the potential of the field was not yet optimal, plus the field had experienced a natural decline because it was old.

"I think this should be done. The quality and quantity of drilling has decreased a lot because the wells are indeed old," he said.

Mamit added, in order to avoid an unplanned shutdown, the government through SKK Migas and its contractors must carry out a lot of drilling activities, workover activities, well service activities to continue to maintain and improve and continue to maintain production facilities.

"In addition, high and economical oil prices will encourage K3S to optimize their wells. The government must also help with licensing constraints in the field that have the potential to hamper oil and gas production as well as social issues that sometimes interfere," concluded Mamit.

Previously, in a meeting of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) with the leadership of the Cooperation Contract Contractor (KKKS), the KKKS technical target was still below the lifting target set by the government.