SKK Migas Targets Bor 90 Wells In 2023

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) targets massive and aggressive activities to achieve the short-term target of producing 660 thousand oil BOPDs and 6160 MMSCFD of gas in 2023 and aligning with the long-term target of 1 million BOPDs and 12 thousand MMSCFDs by 2030.

Head of SKK Migas Dwi Soetjipto said that exploration and exploitation drilling activities in 2023 are expected to increase by 15 percent.

"This year the outlook reaches 77 wells while next year it will reach 90 wells," said Dwi in a statement to the media, Wednesday, December 28.

Dwi added that currently, the contribution of the South Sumatra Cooperation Contract Contractors (KKKS) to national production is quite significant, which is 69 thousand BOPD or 7 percent for oil and condensates and 1,827 MMSCFD or 28 percent for gas.

He further said that SKK Migas as the representative of the Government is tasked with assisting what can be done in order to assist the KKKS in carrying out massive and aggressive activities in order to maintain and increase national oil and gas production.

As for now, he continued, the government has set an incline target after experiencing a decline in the long term. Dwi is worried, especially in oil products that are heavily imported, which if it continues to occur and increase will further burden the country.

"Often there are oil and gas findings, but the time to make projects on stream takes a long time. According to the President's direction, business is not usual, this can be seen from the presence of countries that have provided a lot of incentives so that the field economy can be ensured," explained Dwi.

One activity that needs to be encouraged is more aggressive exploration activities with more attractive incentives and how the approved Plan Of Development (POD) can be accelerated and ensure that all programs in the Work Program and Budget (WP&B) can be carried out on time every year.

For the Sumbagsel area, he said, it also greatly benefits from the condition of infrastructure for oil and gas that is very adequate.

"So the KKKS is encouraged not to hesitate in carrying out new oil and gas reserves discovery and development activities," continued Dwi.

Dwi also encourages investment and further processing of rich gas (Wet natural gas) which can be processed into LPG in PHE Jambi Merang which has the potential to be used as LPG up to 200,000 tons per year.

"If investment for processing rich gas into LPG is realized, it will certainly provide more optimal state revenue, and help the Government reduce LPG imports which have burdened the country due to high volume and import value," concluded Dwi.