Highest Since 2016, SKK Migas Records Upstream Oil And Gas Investment Throughout 2022 Reaches IDR 182 Trillion

JAKARTA - SKK Migas recorded the highest realization of upstream oil and gas investment in 2022 in 7 years since 2016.

Realization of upstream oil and gas investment in 2022 reached US$12.3 billion which is equivalent to Rp.182 trillion, higher than investment in 2021 which amounted to US$10.9 billion or 113 percent of the target.

Head of SKK Migas Dwi Soetjipto said the achievement of upstream oil and gas investment in 2022 had also exceeded upstream oil and gas investment before the Covid-19 pandemic in 2019 which was recorded at US$11.7 billion.

"The realization of upstream oil and gas investment in 2022 which is the highest in the last 7 (seven) years since 2016 shows that efforts to improve the investment climate for the upstream oil and gas sector have shown significant progress and increased competitiveness," Dwi said in a press conference in Jakarta, Wednesday, January 18.

She added that the performance of the national upstream oil and gas investment in 2022, which rose 13 percent compared to last year, was also recorded to be better than the average increase in global investment which only increased by 5 percent.

Meanwhile, for 2023, the investment target for upstream oil and gas is IDR 15.5 billion, an increase of 26 percent compared to realized investment in 2022, which is higher than the increase in global investment which is 6.5 percent.

Present at the same opportunity, Deputy for Exploration Development and Work Area Management Benny Lubiantara said that the high upstream oil and gas investment in 2022 had a positive impact on increasing exploration activities and the main upstream oil and gas activities.

Since the decline in exploration activity due to the COVID-19 pandemic in 2020, she continued, in subsequent years exploration activity has continued to increase.

"If in 2020 the number of exploration wells drilled was 21 wells with an investment value of US$0.5 billion, then in 2022 this has increased to 30 exploration wells drilled with an investment value of US$0.8 billion," she said.

Meanwhile, the 2023 target is US$1.7 billion for drilling 57 exploratory wells.