SKK Migas Pursues The Realization Of KKKS Work Program Commitments

Head of SKK Migas Dwi Soetjipto. (Photo: ANTARA)

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) encourages Cooperation Contract Contractors (KKKS) to make efforts to increase production by taking advantage of the current high momentum of world oil and gas prices.

It aims to meet the national oil and gas lifting target in 2022.

"The current condition of world oil and gas prices should be used by KKKS to carry out activities that have a direct impact on production, especially since the government has shown its commitment to making the upstream oil and gas industry more attractive with various licensing facilities and incentives," said Head of SKK Migas Dwi Soetjipto through a written statement quoted on Friday, June 10.

Dwi added, the high implementation of upstream oil and gas activities has been shown in the 2022 program, especially the drilling of development wells that can directly contribute to increasing national oil and gas production.

Based on data on the realization of the number of development wells and well service activities as of April 2022, the realization is higher than the realization in April 2021 on a year on year basis.

Where the realization for development wells reached 197 percent and for well service activities 194 percent.

"This means that in terms of activities, upstream oil and gas has doubled from the previous year, but the results are not enough to meet this year's lifting target. For this reason, SKK Migas will ensure that the KKKS work program commitments can be carried out properly and jointly formulate breakthrough efforts increasing production in this activity,” said Dwi.

Dwi explained, SKK Migas has six short-term strategies in an effort to meet the oil and gas lifting target in 2022, namely accelerating the filling the gap program, reactivation of idle wells and fields, optimizing planned shutdowns and reducing the frequency of unplanned shutdowns, fuel efficiency and zero flare gas programs, and stock depletion.

"I ask SKK Migas and KKKS to dissect in more detail the realization of each strategy and plan going forward so that all obstacles that occur we can mitigate the risks. In addition, to ensure the implementation of the KKKS program commitments and the estimated number of additional production for Semester II 2022, " said Dwi.

Meanwhile, Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Tutuka Ariadji, said that his party was trying to formulate regulations needed by investors so that the long-term vision of producing 1 million BOPD (barrels of oil per day) and 12 BSCFD (billion standard cubic feet per day) ) gas by 2030 can be achieved.

"The realization of national oil and gas production is still far from what was planned, for that collaboration and tactical steps are needed between all upstream oil and gas stakeholders to achieve the targets set by the government," said Tutuka.

Tutuka asked SKK Migas and KKKS to adopt the latest upstream oil and gas technology.

“The implementation of technology that will have a direct impact on increasing production needs to be maximized. We also hope that SKK Migas and KKKS can provide a solution to the discrepancy between the planned and realized production in 2022," he concluded.