SKK Migas Says Oil And Gas Potential Will Be Dominated By Gas

PGN Saka's Pangkah Oil and Gas Field has succeeded in increasing oil and gas production to 13,000 BOEPD. (Photo: ANTARA)

JAKARTA - Secretary of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Taslim Z Yunus said the oil and gas potential in the future will be dominated by gas, oil and gas discoveries are also dominated by gas.

Taslim said, based on the plan to increase oil and gas production by 2030, gas production is targeted to reach 12 billion cubic feet per day (BSCFD) or an increase of more than 100 percent from current production.

"The role in supporting efforts to increase national gas consumption is not only the task of the marketing function, but also requires the support of the communication function to voice it effectively to stakeholders. May 27.

Taslim added that the success and smooth operation of upstream oil and gas in the regions including drilling activities, land acquisition and others, one of the influencing factors is the support from local stakeholders.

"Therefore, Cooperation Contract Contractors (KKKS) must continue to maintain cooperation and synergy with local governments and other stakeholders. As the saying goes "where the earth is stepped on, the sky is upheld," said Taslim.

Previously, Director General of Oil and Gas Tutuka Ariadji revealed, a total of 62.39 TSCF of gas reserves spread throughout Indonesia.

The Indonesian government invites all potential investors to contribute in developing reserves.

"The government offers ease of doing business and supporting facilities for investors, ranging from regulations, licensing, to fiscal and non-fiscal incentives," he said in a written statement, Thursday, May 12.

Tutuka detailed that the industrial, electricity, and fertilizer sectors are the largest gas consumers in Indonesia.

Meanwhile, around 22.57 percent is exported in the form of LNG, and 13.13 percent is exported through pipelines.

Total gas consumption reached 5,734.43 BBUTD. To maintain energy security, Indonesia targets natural gas production of 12 BSCFD by 2030.

Based on the Indonesian Gas Balance, it is estimated that there is a potential surplus to supply the needs of new domestic industries or for export.

To meet domestic needs, especially for industry and power generation, the Indonesian government continues to improve infrastructure development, such as gas pipeline infrastructure.

In addition, the development of small-scale and virtual LNG pipelines is also important to secure energy supply in certain areas with geographical constraints, such as in scattered small islands, especially in the eastern part of the country.

"With these abundant reserves and potential, it opens the natural gas market in Indonesia. We welcome investors to join in the development of gas in the country to provide reliable energy supplies and at the same time, to achieve the NZE target in 2060," concluded Tutuka .