Target 1 Million BOPD Boosts Indonesia's Investment Increase To Level 5.30

Head of the SKK Migas Program and Communication Division Hudi D Suryodipuro. (Photo: Doc. ANTARA)

JAKARTA - SKK Migas said that the production target of 1 million barrels of oil per day (BOPD) and 12 billion cubic feet of gas per day (BSCFD) by 2030 had a positive impact on the development of the upstream oil and gas industry in Indonesia.

One of them is the improvement of the fiscal system and taxation provided by the government which has an impact on increasing the value of Indonesia's upstream oil and gas investment competitiveness from 4.75 in 2020 to 5.30 in early 2024 according to the Standard & Poor's International Rating Institute (S&P).

Head of the SKK Migas Program and Communication Division, Hudi D Suryodipuro, said the increase had a significant impact on the upstream oil and gas investment landscape, which has experienced rapid growth in recent years.

"Data in 2023 shows an increase in investment reaching 13.7 billion US dollars, an increase of 13 percent from 2022. This figure not only exceeds the long-term SKK Migas plan target of 5 percent, but also exceeds the global investment trend," Hudi said on Thursday, June 13 in Jakarta.

For 2024, Hudi continued, the investment plan was set at 16.1 billion US dollars, signaling an 18 percent increase in realization in 2023.

This is in line with the increasing activity of sustainable work programs in this sector.

"With increased investment in upstream oil and gas, work programs such as drilling, workovers, and well service have also increased since 2021," added Hudi.

Hudi said the increase in investment also had a positive impact on exploration activities. The value of upstream oil and gas exploration investment rose from USD 0.54 billion in 2020 to USD 0.93 billion in 2023.

The increase contributed to major discoveries such as the North and Screen Gangs, which were among the world's five largest discoveries in 2023.

"With the findings of the large reserves (giant disclosures) in 2023 and also in 2024 at the Tangkulo-1 well in the South Andaman WK (Work Area) of 2 TCF, SKK Migas is committed to encouraging the acceleration of the on stream process of these findings, ensuring that they can immediately contribute to national oil and gas production as quickly as possible," Hudi continued.

To maintain this positive momentum, SKK Migas continues to evaluate long-term plans and carry out various efforts to accelerate the process.

"SKK Migas prioritizes evaluation and improvement of long-term planning strategies to ensure that organizational goals are in line with local and global dynamic conditions," concluded Hudi.