Lifting Mandek, SKK Migas Holds Production Reduction Rate

The (intermediate) refinery

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) is trying to increase national oil and gas production has not yet received optimal results according to the set target.

Head of the SKK Migas SKK Program and Communication Division Hudi D. Suryodipuro said, SKK Migas together with Cooperation Contract Contractors (KKKS) in the midst of various obstacles and challenges that exist continue to make the best efforts (best efforts) to be able to optimize national oil and gas production in order to achieve short-term targets, as well as become the foundation to support the achievement of long-term targets.

Hudi added that several fields that contributed significantly to production had old facilities. For example, facilities in PHE ONWJ that have existed since 1966 and continue to be used to date, or are around 58 years old.

For this reason, Hudi explained that SKK Migas and KKKS made their best efforts so that the old facilities could operate optimally.

"Right now, for the field with old facilities, talking about no longer production capabilities or whether production can be increased, but how to prevent an unplanned shutdown because if there is a leak, the impact is that production in the field will be stopped, as a result production and lifting will decrease," he said, quoted on Thursday, April 25.

Hudi said, related to the steps taken by SKK Migas to suppress the decline rate and optimize national oil and gas production, SKK Migas and KKKS continue to improve workover, well service activities, as well as drilling development wells.

Hudi said that these activities continued to increase in significant numbers. For workover activities, if in 2021 there are 566 wells, then in 2023 it will increase to 834 wells, or an increase of about 47.3 percent.

Likewise, well service activities, which in 2021 are 22,790 activities, will reach 33,412 in 2023, an increase of 46.6 percent within 3 years. He added that for 2024 the workover is targeted at 905 wells and 35,690 well services.

Furthermore, Hudi explained that efforts to keep production optimal were also carried out by increasing drilling development wells. If in 2021 the realization of drilling development wells is as much as 480 wells, then in 3 years in 2023 it will increase to 799 wells, an increase of 66.5 percent.

This shows that SKK oil and gas and KKKS carry out massive and aggressive activities and work hard to maintain the productivity of the oil and gas field.

"The hard work of SKK Migas and KKKS, can be seen from the trend of oil and gas production which is starting to improve, which is marked by a decline rate that can be only 1.1 percent in 2023 compared to the decline rate from 2016 to 2022 which is an average of around 5 percent. Even for gas, in 2023 there has been an incline rate of 2.1 percent, "said Hudi.

The realization of production in April 2024 has shown an increasing trend at 581 thousand barrels. We expect the support of relevant stakeholders so that all programs such as reactivation of wells, drilling, well service and others can be carried out all of them, so that the upward trend of production can be maintained so that at the end of this year oil production is even higher than today," explained Hudi.

To encourage additional oil and gas production, currently SKK Migas is accelerating the completion of upstream oil and gas projects, which in 2024 are targeted to be completed by 15 upstream oil and gas projects that will provide additional oil production of 46,837 barrels of oil per day (BOPD) and additional gas production of 351 million cubic feet per day (MMSCFD) and 192 MT/D LPG.

"We are optimistic that investment will continue to increase from 2021 until now, as well as the increasingly massive various programs and the success of maintaining optimal production facilities, as well as the completion of upstream oil and gas projects, so efforts to encourage increased oil and gas production can be realized," he said.