JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) together with the upstream oil and gas company (Cooperation Contract Contract Contractors/KKKS) have agreed to activate 1,086 inactive wells operating or idle next year.
Deputy for Exploitation of SKK Migas Wahju Wibowo said the operation of thousands of idle wells is projected to be able to produce 38,000 barrels of oil per day (BOEPD).
"We appreciate the results of WP&B 2023 which has determined the number of idle well reactivation programs in 2023 which will reach 1,086 idle wells with an estimated initial production of 38,000 BOEPD," he said in his statement, quoted from Antara, Thursday, December 15.
SKK Migas and KKKS project to complete re-activation activities of more than 800 idle wells through workover work and well services this year.
Based on the calculation of SKK Migas, Indonesia now has around 10,000 wells that are included in the idle well criteria. SKK Migas has started carrying out aggressive reactivation activities since 2021 which reached 662 wells increasing compared to the 2020 reactivation activity of 326 wells.
In the 2022 work program & budget (WPnB) it was agreed to carry out re-activation of 725 idle wells.
Wahju said that SKK Migas was very serious in encouraging increased oil production through idle well reactivation to become one of the agendas in The 3rd International Convention on Indonesian Upstream Oil and Gas (ICIUOG) which was held in Bali, in November 2022.
In this activity, the first group of the head of agreement (HoA) was signed with the Pertamina Regional 1 idle well re-activation strategic alliance with six technology providers.
"We hope that the assets that sleep again can contribute, be it wells, fields, or production facilities to support efforts to increase national oil and gas production, thus making an optimal contribution in an effort to achieve oil and gas production targets by 2030, namely oil production of 1 million BOPD and gas 12 billion cubic feet per day (BSCFD)," explained Wahju.
SKK Expert Migas Ngatijan expressed his belief that the achievement of this year's idle well reactivation will increase next year and in the following years.
He revealed that the idle well reactivation activity will reach the harvest stage with higher production additions.
"The challenge is how SKK Migas and KKKS can get the right implementation strategy from other aspects that are supporting in idle well re-activation activities," said Ngatijan.
He further revealed that SKK Migas is again targeting to be able to reactivate more than 1,000 idle wells by 2024. Various studies related to idle well potential are currently underway in several KKKS along with third parties (universities) with a total number of wells being audited reaching around 4,500 wells.
"Regarding the potential of idle wells, SKK Migas and KKKS cannot work alone, but must collaborate and synergize with other parties who have the potential and ability, such as universities and technology providers," he concluded.
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