SKK Migas Explains the Causes of the 2022 Oil Lifting Not Reaching the Target

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) reported that oil and gas lifting achievements in 2022 did not reach the set targets.

It is known that oil and gas lifting in 2022 is 612,300 barrels per day (BOPD) or only 87 percent of the APBN target. Meanwhile, the realization of gas pipelines reached 5,347 million cubics per day (MMSCFD), or 92 percent of the state budget target of 5,800 MMSCFD.

Deputy Exploitation Wahju Wibowo said that oil and gas lifting had not reached the target due to various factors, one of which was the high number of unplanned shutdowns.

"In this regard, SKK Migas has conducted a maintenance audit and preparation steps for its implementation. It is hoped that with better production facilities it can support massive program activities in 2023", he said in a press conference in Jakarta quoted on Thursday, January 19.

Furthermore, he added, previously in 2022, SKK Migas targeted oil lifting to reach 703 MBOPD while gas distribution was 5,800 MMSCFD. However, this target was hindered by the Covid-19 variant of Omicron which increased in mid-2022.

"This is the waterfall from the beginning we determined 703. When we set the target for the state budget of 730, we submitted the state budget in May or June, at that time there was a lot of uncertainty, Covid was still high. We hope that at that time the run rate in early 2022 was as high as 660, but it turned out to be only 612, so there was already a deficit at the beginning of the year of around 49 thousand. That is the same uncertainty when we predicted the 2022 realization", he added.

In addition to encouraging increased activity and investment, SKK Migas is also making efforts to increase the operational efficiency of upstream oil and gas so that it can make an optimal contribution to state revenues and optimal returns for Cooperation Contract Contractors (KKKS).