Head Of SKK Migas Gathers KKKS CEO To Accelerate Production

Head of SKK Migas Dwi Soetjipto. (Doc. SKK Migas)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) has issued Decree of the Minister of Energy and Mineral Resources No. 110.K/MG.01/MEM.M/2024 concerning Guidelines for Returning Potential Working Areas that are not being worked on in the Context of Optimizing Oil and Gas Production. Following up on the ESDM Ministerial Decree.

Responding to the Ministerial Decree, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) moved quickly to gather KKKS CEOs to carry out inventory and potential production acceleration to increase production.

Head of SKK Migas Dwi Soetjipto said that there have been many facilities and incentives from the Government so that oil and gas projects become economic, can choose, can change and others.

If in the past there was a term non-economic project, then now it has changed, namely the upstream oil and gas project is guaranteed economically, with the Government providing the flexibility of the KKKS to propose it to become economical.

Therefore, we are waiting for a breakthrough from the KKKS. We need to accelerate for increased production, among others, through optimizing the Working Area and minimizing stalled potential or sleeping area," he said, quoted on Saturday, November 2.

Furthermore, Dwi said that there are several unproduced fields, Plan of Development (PoD) that have not been continued to the production stage, as well as findings of exploration that have not been followed up, especially in WK Exploitation which only focuses on producing existing.

SKK Migas noted that there are potentials that can still be developed. First, there are 301 structures that have potential of 1.8 BBO oil and 13.4 TCF gas that have not been developed, Second, there is the potential for increased production from EOR & Waterfood activities.

SKK Migas has mapped all existing potentials and will focus on implementing this technology to 12 Fields with a potential recovery of 951 MMBOs,

Third, there is the Stranded POD category, which includes fields with an approved Plan of Development (POD), but its implementation is hampered. Currently, there are 74 fields in this category that have the potential of 153 MMBO oil and 5.3 TCF gas, but cannot be utilized yet, Fourth, there are Idle Field and Idle Well, namely fields or wells that are currently inactive, but still have the potential to be reactivated. Currently, there are 203 idle fields with a production potential of 122 MMBOE.

"I ask each KKS Contractor to also re-evaluate and formulate strategies so that they are in harmony with the SKK Migas strategy. KKS contractors are targeted to be able to convey the inventory and follow-up strategy a maximum of 1 week after this meeting or the first Sunday of November 2024," said Dwi.

"In the future, if these assets are not productive because KKKS does not implement WP&B, then SKK Migas will evaluate or even replace the management of the KKS Contractor concerned. There should be no potential reserves that are not developed, the state should not be held hostage," said Dwi.