Pertamina's Government Relys On Genjot Migas Production

Oil refinery (Photo: intermediate)

JAKARTA - The government continues to strive to increase domestic oil and gas production (oil and gas) to reduce dependence on imports.

One of the steps taken is to optimize the role of State-Owned Enterprises (BUMN), namely PT. Pertamina (Persero) as the frontline in this effort. Through strategic steps, Pertamina is empowered to lead a number of oil and gas exploration and production projects aimed at meeting domestic energy needs and reducing dependence on imports.

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif revealed that oil and gas production in Indonesia continues to decline due to reduced reserves and technical challenges in terms of exploration. To reverse this trend, the government is working hard to increase Indonesia's oil and gas production with various strategies.

"From 2020, oil production continues to decline because we are now managing old fields and have not yet met the prospect of a new oil field, but we are always looking for prospects," Arifin told the media crew quoted Monday, August 5.

Responding to these challenges, Arifin explained that the government has prepared a short-term strategy, namely by increasing production from existing fields plus the use of the Enhanced Oil Recovery (EOR). Consisting of drilling more than 1,000 development wells each year, reactivation of idle wells as many as 1,000-1,500 wells per year, as well as accelerating the execution of the Minar Area 2 CEOR, Steamflood Rantau Bais and simple surfant Balam South.

From this short-term strategy, the results began to be seen by the increase in oil production in the Rokan Block, with Pertamina's subsidiary as a Cooperation Contract Contract Contractor (KKKS), namely Pertamina Hulu Rokan.

"Now the largest production (earth oil) is Pertamina Hulu Rokan, from the data as of June 30, 2024, its production is 157 thousand barrels per day," he said.

In addition, from the data presented by Minister Arifin, of the 10 KKKS with the largest oil production, six of them belonged to Pertamina. This gives a positive signal that state-owned state-owned state-owned state-owned companies are able to compete with foreign companies.

It was recorded that based on data as of June 30, 2024, Pertamina's subsidiary contributed up to 57 percent of national oil production. Meanwhile, gas production from the same data, Pertamina contributed 32 percent of national production.