SKK Migas Ensures EOG Will Invest In Full If MNK's Drilling Is Gulamo And Kelok In Accordance With The Hypothesis

Illustration. (Photo: Doc. Antara)

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) revealed that companies from the United States (US) EOG Resources will invest in Indonesia if the Non Conventional Oil and Gas (MNK) drilling in Gulamo and Kelok is in accordance with the initial estimates of SKK Migas.

Deputy for Exploration, Development and Management of the SKK Migas Working Area, Benny Lubiantara said that the EOG has a commitment to transfer knowledge with local companies and create an efficient and effective supply chain ecosystem involving local companies.

"Effective and efficient supply chain is the key to MNK's success. The presence of EOG will encourage local companies to have expertise as an oil and gas support industry for MNK which has great potential, so that the benefits for local companies will be sustainable," said Benny, Friday, August 11.

Furthermore, Benny explained that after successfully taxing the Gulamo DET-1 well which was carried out in the Rokan Block, SKK Migas and Pertamina Hulu Rokan (PHR) would continue the search for Non Conventional Oil and Gas with the Kelok DET-1 wells in the same cluster as MNK Gulamo.

Based on the results of the United States' Energy Information Administration (EIA, 2013), the potential for MNK in five basins in Indonesia, there are gas and in-place oil resources of 303 trillion cubic feet or trillion cubic feet (TCF) and 234 billion barrels of oil (BBO).

"One of the potential sources of MNK is in the Central Sumatra Basin basin. The potential for North Aman sub-Basin in the Central Sumatra Basin basin has an inplace resource potential of 1.86 billion barrels of oil and 2.4 cubic TCF of gas," he continued.

Benny said that the exploration of MNK requires high costs, high risks, and technology, only certain companies that control and have experience.

"The potential of MNK is far below the earth's stomach, so investors will certainly calculate the risk in detail because the opportunity for failure is large at large costs, so it is very difficult to invite investors to explore in MNK," said Benny.

Benny explained that the Gulamo MNK well was drilled with a total depth plan of 8,559 ft Measured Depth (MD) or more than 2.5 km, and the plan would be added to another 1000 feet.

As an illustration, the drilling depth of MNK Gulamo will approach the height of Mount Merapi. In it, drilling requires large rigs of up to 1,500 horse power (HP), which are also limited in number.

Benny informed that with the high risk, the large investment and at least the world's companies that have the expertise to drill MNK wells, the enthusiasm for oil and gas in MNK wells had faded.

However, since 2018 SKK Migas has again intensively socialized the potential of MNK, including going directly to look for world companies that are experts in drilling MNK wells.

"We are grateful that this hard work yielded positive results with the entry of one of the world MNK's expert companies for cooperation in drilling MNK wells in Rokan. Although initially the company had canceled itself, SKK Migas managed to convince and thank God, on July 27, 2023, we both witnessed the drilling of the MNK well in Gulamo," concluded Benny.