SKK Migas Targets Investment To Increase By 20 Percent Next Year

Head of SKK Migas Dwi Soetjipto. (Photo: Mery Handayani/VOI)

BALI - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) has set an ambitious target for investment next year. Where the increase in investment is targeted to increase by 20 percent compared to this year.

Head of SKK Migas Dwi Soetjipto said his agency had set an increase target of 20 percent compared to 2021, which was US$13.2 billion.

Until the third quarter of 2022, SKK Migas has at least captured realized investments of US$7.7 billion.

This means, continued Dwi, there are still 5.5 billion US dollars that must be pursued in the remaining 3 months in 2022.

"In 2023 we are preparing a work plan budget. But we are chasing an increase of 20 percent," he said when met by reporters in Nusa Dua, Bali, Thursday, November 24.

Dwi said there was a significant increase in drilling activity. In 2020 there were 240 wells explored. "This year our outlook is 800 wells and next year we have agreed with contractors as many as 1,050 wells. So it is quite progressive in terms of activity," he said. For your information, the government continues to boost oil and gas production. This is to pursue the production of 1 million barrels per day (BPH) of oil and 12 billion standard cubic feet per day (BSCFD) of gas by 2030. The project requires at least 179 billion dollars of investment. According to Dwi, the target was made before COVID-19 hit the world, including Indonesia.

However, Dwi acknowledged that the pandemic was hampering production so that Indonesia was suspended by around 50,000 barrels per day.

"So that now we are behind about 50,000 (barrels per day) for oil. So, currently the position of approximately 630,000 (barrels) this year," he said.

Furthermore, Dwi explained, the current challenge is when setting up targets that take place before COVID-19, draining advanced oil or enhanced oil recovery (EoR) in the Rokan Block is quite large.

Chemicals, at that time EoR was still imported. Then, what is also a problem is the delivery of stagnation due to COVID-19.

Therefore, Dwi said, his party is exploring collaborating with chemical producers from within the country.

In addition to reducing production costs, this effort is also long-term anticipation.

"This is what we hope to get a plan of development for EoR today to get it soon next year," he said.