Invite The Representative Of The Ministry Of Finance To The KKKS, The Directorate General Of Oil And Gas Opening The Realization Of Oil And Gas Lifting 2022

JAKARTA - The Ministry of Energy and Mineral Resources through the Directorate General of Oil and Gas will hold a Joint Calculation of Oil and Gas Lifting in the fourth quarter of 2022. This is done to realize transparency and information disclosure in upstream oil and gas business activities.

During the meeting, the Director of Oil and Gas Program Development represented by the Coordinator of State Revenue and Management of Non-Oil and Gas State Revenue, Heru Windiarto explained that the amount of state revenue in the oil and gas sector is very vulnerable to change and is influenced by several main parameters that fluctuate, namely the price of Indonesian crude oil (ICP), the rupiah exchange rate, the volume of lifting, natural factors and management based on several regulations/institutions that surround the authority of several agencies.

"Transparency has become our common commitment. Information needs have become a public need, especially for areas with upstream oil and gas business activities," Heru said, quoted on Saturday, February 25.

In the 2022 State Budget which has been approved by the Government and the Indonesian House of Representatives, Heru continued, oil and gas receipts in the 2022 State Budget Amendment (Perpres 98/2022) are targeted at IDR 139.1 trillion, which is calculated using macro assumptions, namely oil lifting of 703 MBOPD, natural gas lifting of 1,036 MBOEPD, ICP of 100 US dollars per barrel and rupiah exchange rate of IDR 14,450 per US dollar.

Meanwhile, the performance of upstream oil and gas business activities is cumulative until the fourth quarter of 2022 or the January to December 2022 period, nationally, namely the realization of oil lifting an average of 606.98 MBOPD or 86.34 percent compared to the target, the realization of natural gas lifting is 939.48 MBOEPD or 90.68 percent compared to the target.

Meanwhile, the realization of the average price of Indonesian crude oil (ICP) is 97.03 US dollars per barrel, or 97.03 percent compared to the target of 100 US dollars per barrel.

Until the fourth quarter of 2022, the achievement of the oil and gas lifting target still faces many obstacles in the field, both operational constraints, development activities and other non-technical obstacles so that the ongoing coordination between all stakeholders including oil and gas producing regions throughout Indonesia is expected to be able to maintain and improve oil and gas lifting in the next period.

Heru emphasized that the Ministry of Energy and Mineral Resources together with SKK Migas and all KKKS continue to strive to maintain and increase oil and gas production, among others, through accelerating the development of new fields and accelerating production in new and old fields.

"In addition, optimizing oil acquisition from existing oil reserves in fields that have been operating through increased oil reserves management," explained Heru.

Another effort is to increase the reliability of production facilities and supporting facilities to increase efficiency and reduce the frequency of unplanned shutdown so as to reduce the loss of oil production opportunities, increase reserves through exploration activities and the implementation of Enhanced Oil Recovery (EOR).

Based on the calculation data for the fourth quarter of oil and gas lifting, there are a number of areas whose oil and gas lifting is above the target. On the other hand, the decrease in lifting occurred in several areas, including due to the old oil and gas field, as well as the maintenance equipment process.

The old oil and gas field will naturally experience a decline in production. However, KKKS continues to strive so that this decline can be minimized," he added.

The Joint Calculation of Oil and Gas Lifting in the fourth quarter of 2022 was attended by representatives of the Ministry of Finance, SKK Migas, BPMA, KKKS, as well as oil and gas producing areas, namely East Java, Riau Islands, Bangka Belitung Islands, Lampung, DKI Jakarta, South Sumatra, East Kalimantan, North Kalimantan, West Java, Jambi, Aceh, North Sumatra, Central Sulawesi, Riau, Maluku, West Papua, Central Java, Central Kalimantan, South Kalimantan and South Sulawesi.