SKK Migas Attitudes Of Increasing World Oil Prices As An Opportunity For Reproduction

Illustration. (Photo: Doc. Antara)

JAKARTA - The increase in world oil prices in early 2022 and has remained at a high level to date, was positively addressed by the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas). Especially by continuing to encourage Cooperation Contract Contractors (KKKS) to increase investment and more massive and aggressive work programs.

Efforts made by SKK Migas yielded positive results in the third quarter of 2022, with the main upstream oil and gas activity achievements and increased investment compared to the same period last year.

The development well drilling activity as one of the main upstream oil and gas activities in the third quarter of 2022 has exceeded the achievement in 2021. This is a positive catalyst for efforts to increase oil and gas production to be able to get closer to the 2022 target.

In addition, the high number of main upstream oil and gas activities will have a positive impact on efforts to maintain the more optimal entry level of oil and gas production entering early 2023.

"The increase in world oil prices is addressed by massive and aggressive upstream oil and gas operational activities. One of them is development well drilling activities in the third quarter of 2022 which increased compared to the achievements in the same quarter last year," said Head of SKK Migas Dwi Soetjipto at a press conference in the third quarter of 2022 in Jakarta, Monday, October 17.

In fact, he reported that until September 2022 the number of development well drilling activities had exceeded the achievements in 2021 and would contribute to achieving investment targets.

Dwi added that the activity of drilling the graph development well continues to increase in the third quarter. This encourages the addition of the development well drilling target from the 790 wells target set on work, the program & budget (WPnB) to 801 wells, which will also encourage the achievement of the investment target of upstream oil and gas in 2022.

Until the third quarter of 2022, the main activity of upstream oil and gas has recorded an encouraging performance. For exploration well drilling activities, it has reached 21 wells or matched the achievement of the same quarter last year.

The drilling activity for development wells until the third quarter of 2022 reached 545 wells or about 171 percent compared to the achievement in the third quarter of 2021 and reached 116 percent when compared to the achievement until the end of 2021.

As for the workover, it has reached 495 wells or about 116 percent above last year's third quarter and around 87 percent of the 2022 target. Meanwhile, the well service activity has reached 22,511 wells or about 134 percent compared to the same quarter last year and around 99 percent of the 2022 target.

Dwi further said that the high price of world oil also had a positive impact on the country, until this year's quarter state revenues had reached 13.95 billion US dollars or around Rp. 202 trillion. This amount is equivalent to 140 percent of the 2022 APBN target and around 83 percent of the 2022 APBN change target.

"In the midst of the threat of economic recession and high inflation which is always reminded by the President, the optimal state revenue from the upstream oil and gas sector is a tangible form of the contribution of this industry in supporting national development," concluded Dwi.