Cooperating With Sinopec To Sign EOR Cooperation To CCS, SKK Migas Boss: Support Sustainable Energy Resilience

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

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) and BUMN Migas of the People's Republic of China, Sinopec, signed a Memorandum of Understanding (MOU) for strategic cooperation in oil and gas.

The potential collaboration in the MOU includes opportunities for acquisition/farm in exploration/production blocks, collaboration in activities to increase well and field productivity, enabling oil recovery (EOR) programs, non-conventional oil and gas (MNK) and collaboration in the CCS/CCUS sector.

"This agreement marks an important moment in the collective journey of Indonesia's upstream oil and gas industry to realize the targets set by the Government, namely 1 million barrels of oil per day (BOPD) and 12 billion standard cubic feet per day (BSCFD) for gas production to support sustainable energy and future security," said Head of SKK Migas Dwi Soetjipto in his statement to the media, Wednesday, September 4.

Dwi added that the target of increasing oil and gas production is very important for Indonesia's energy security and economic growth. To achieve this requires joint efforts, expertise, and innovation from SKK Migas and Sinopec.

Dwi said SKK Migas and Sinopec could take advantage of each other's strengths to explore new boundaries, optimize existing resources, and implement cutting-edge technology that would push our production capabilities to a higher level.

He explained that the SKK Migas and Sinopec partnerships will focus on upstream oil and gas activities, which include conventional and non-conventional hydrocarbon (MNK) exploration, and production, including cooperation in increasing oil acquisition (EOR/CEOR) where Sinopec has succeeded in implementing it on a commercial scale.

"This collaboration is the key to unlocking Indonesia's enormous energy potential, especially in areas that require advanced technology and innovative approaches," continued Dwi.

Furthermore, Dwi explained, collaboration with Sinopec also includes strategic initiatives in the Arrest, Utilization, and Storage of Carbon (CCS/CCUS).

"Indonesia has started the CCS/CCUS project, with the current real progress in the development of CCS/CCUS starting to be seen in Tangguh Train 3 Field which was inaugurated by President Joko Widodo in November 2023. Other CCS/CCUS projects that have entered the study stage and preparations are in Masela and Sakakemang," he said.

He explained that currently Indonesia is developing 12 EOR projects with an estimated total reserve of 951 MMSTB.

The Phase I EOR project at Minas Field, Sumatra, has received POD approval and is ready to be developed.

"We hope that other projects will follow soon. For the development of CCS/CCUS, Dwi estimates that the potential for carbon capture could reach around 12.2 GT," added Dwi.