SKK Migas Admits Realization Of Oil And Gas Production Is Still Low

Photo Illustration ANTARA

JAKARTA - Head of the Special Task Force for Upstream Oil and Gas Activities (SKK Migas), Dwi Soetjipto revealed that the realization of production and lifting was still lower than the target of the State Budget.

Dwi said that one of the reasons was due to the unplanned shutdown and the delay in the completion of the national upstream oil and gas strategic projects, namely Jambaran-Tiung Biru and Tangguh Train 3 which had been included in the calculation in the preparation of lifting targets in the 2022 State Budget.

The massive development well drilling program carried out by KKKS outside EMCL has been able to show positive results by being able to withstand the rate of production decline and is currently in an increasing production phase.

"We also continue to strive to complete national upstream oil and gas projects, including national strategic projects in the upstream oil and gas sector," he said at a press conference on the achievements and performance of upstream oil and gas in the first semester of 2022 in Jakarta, Friday, July 15.

He added that until the first semester of 2022, 6 upstream oil and gas projects could be completed from the target of 12 projects this year.

The upstream oil and gas national strategic project that will be onstream in 2022 is Jambaran-Tiung Biru (JTB).

"Therefore, the rest of 2022, there will be a trend of increasing national oil and gas production and lifting," continued Dwi.

In addition, several main upstream oil and gas activities in the second quarter of 2022 have exceeded the achievements in the same period in 2021.

For example, in the drilling of exploration wells, which until the First Semester of 2022 had reached 16 wells or higher than the same period in 2021 as many as 13 wells or 23 percent higher.

Likewise for development well drilling activities which reached 348 wells or 87 percent higher than the realization of the same period in 2021 as many as 186 wells.

"SKK Migas continues to coordinate with KKKS, including last Monday (11 July) gathering the CEO/highest leadership of KKS at the CEO Forum activity with one of the joint commitments being to realize what has been agreed in the 2022 work, program & budget (WPnB) with accelerate investment and implementation of exploration well drilling and development wells," he explained.

Dwi expressed his optimism regarding efforts to find oil and gas reserves through drilling exploration wells. This belief is supported by the success ratio of drilling exploration wells in Indonesia which in recent years has recorded a high success and is above the success of world exploration drilling.

Of the 4 exploration wells that have been completed in the first semester of 2022, as many as 3 wells produced discovery and 1 well has no discovery or the success ratio reaches 75 percent.

In 2021 the success ratio of drilling exploration wells in Indonesia will reach 55 percent and the global success ratio in 2021 will reach the world average at that time, the success ratio of 23.8 percent.