JAKARTA - The Budget Agency (Banggar) of the DPR RI emphasized that the decline in oil and gas production in the first semester of 2022 must be a priority for the government's attention at this time.
"Currently, it is a momentum for Indonesia to increase its oil and gas production in the midst of high world crude oil prices," said Chairman of the Banggar DPR RI Said Abdullah in a written statement, Monday, July 4.
On the other hand, the Banggar DPR RI also asked the government to optimize the achievement of structural reforms and spending quality (spending better) in running the APBN.
Previously, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) reported that the realization of transported production or national oil and gas lifting during the first quarter of 2022 was still below the target.
Head of SKK Migas Dwi Soetjipto said that the national oil and gas lifting was not yet optimal due to the inherent impact of the pandemic and a number of unplanned shutdowns throughout 2021.
"Our production and lifting are still constrained, especially the very low entry point in early 2022 because the impact of the pandemic in the first quarter we lost there around 20,000 barrels per day bpd then mostly the impact of an unplanned shutdown," said Dwi during the Upstream Performance Press Conference. First Quarter of 2022 Oil and Gas, some time ago.
SKK Migas also 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 able to be utilized 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 Dwi.
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 year on year (yoy).
Where the realization for development wells reached 197 percent and for well service activities 194 percent.
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