Still Far From The Target, Indonesia's Oil Lifting Until The First Semester Of 2024 Reaches 576,000 BPOD

Head of SKK Migas Dwi Soetjipto. (Photo: Doc. Antara)

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) announced that the realization of oil and gas lifting throughout the first semester of 2024 was still below the target of the 2024 State Budget and Work Program (WPNB) agreed by contractors.

Head of SKK Migas Dwi Soetjipto said that the realization of oil lifting in the first semester of 2024 reached 576,000 barrels per day (BOPD) or 91 percent of the 2024 APBN target, which was 635,000 BOPD.

Meanwhile, the realization of lifting or distributing gas in the first semester of 2024 reached 5,301 million cubic feet per day (MMSCFD) or 92 percent of the 2024 APBN target, namely 5,785 MMSCFD.

Dwi explained that the culprit had not yet achieved the oil and gas lifting target in the first semester of 2024 due to flooding in several areas, especially in the Rokan Block which hampered drilling.

"In the first semester, we experienced flooding disturbances everywhere. So, practical drilling for more than one month cannot be done, so there are several delays in drilling activities," he said during the Press Conference on Upstream Migas Performance in Semester I 2024 in Jakarta, Friday, July 19.

With this achievement, Dwi is pessimistic that oil and gas lifting will be achieved according to this year's target.

The projected or outlook for oil lifting until the end of 2024 is 595,000 BOPD or 94 percent of the 2024 APBN target.

Then, the projected gas channel until the end of 2024 will also not reach the 2024 APBN target, namely 5,554 MMSCFD or 96 percent of the target, although it is 100 MMSCFD larger than the contractor's commitment.

"In this gas, the problem is in infrastructure and we hope that later (Tol) Batang-Cirebon will be able to be connected by the end of 2025. So, excess gas from East Java can be channeled to West Java," he said.

"Likewise, the pumping in Natuna, so that the excess in Natuna can be channeled to Batam. So, currently Natuna flows to Singapore, we hope that Batam will also absorb the excess gas later. So, the gas from central Sumatra can be channeled to support West Java," he added.

He also revealed that the realization of cost recovery in the first semester of 2024 reached 3.3 billion US dollars or still below the target of 3.47 billion US dollars.

SKK Migas predicts cost recovery of 8.05 billion US dollars or below the target of 8.25 billion US dollars.

Furthermore, the realization of upstream oil and gas investment in the first semester of 2024 reached 5.6 billion US dollars or below the target of 7.43 billion US dollars.

Dwi projects the realization of investment by the end of this year of US$15.7 billion or below the target of US$17.7 billion.