Massive Investment Successfully Reduces The Rate Of Lowering Upstream Oil And Gas Production

Illustration (Photo: Doc. Antara)

JAKARTA - The Special Task Force for the Implementation of Upstream Oil and Gas Business Activities (SKK Migas) reports that the rate of decline in upstream oil and gas production continues to decline.

Head of SKK Migas Dwi Soetjipto said, throughout 2023, oil declines were reduced to only 1.2 percent compared to the previous year which was 6.9 percent.

"In 2023 we can hold 1.2 percent and we have to start increasing in 2024," he said at the 2023 Hulu Migas Performance Press Conference, Friday, January 12.

Dwi said that massive investment, especially in drilling development wells, has been able to reduce the rate of production decline in the majority of production fields that are already in demand, so oil lifting in 2023 will only decrease by 1.2 percent.

Regarding gas, Dwi said that the gas production trend was no longer decline but had increased or accelerated at 2.2 percent, but because the buyers had not optimally absorbed gas, lifting (gas lines) only grew 1 percent.

"We will encourage the realization of gas absorption by buyers so that absorption in 2024 is even more optimal," said Dwi.

Furthermore, he explained, what we need to underline is that 2023 will be a solid foundation and a good lessons learning, because in the midst of negative events early 2023 which led to a safety stand down which had an impact on upstream oil and gas operations.

"We managed to catch up so that the performance in 2023 was maintained properly. This gives us a strong sense of optimism and confidence in 2024 that we can produce even better performance," he said.

Regarding the achievements in exploration investment, Dwi said that 2023 will be the best year in the discovery of oil and gas reserves for more than 2 (two) decades.

There are 2 main milestones that make 2023 the best year in the exploration sector, namely the total resources found to reach the discovery of recoverable resources which reached + 805.1 million barrels of oil equivalent or the largest since the discovery on the Abadi field 23 years ago in 2000.

In addition, there were 2 discoveries recorded as giant discoverers in deep-sea drilling in the North Gang and Screen which according to WoodMackenzie, Rystad Energy and S&P Global the two discoveries were included in the world's 5 largest discoverers in 2023.