Consumption Of Normal Post-pandemic Fuel, Minister Of Energy And Mineral Resources Asks KKKS To Increase Oil Production

Minister of Energy and Mineral Resources Arifin Tasrif (right) (ANTARA)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif asked the Contract Contractors for Cooperation (KKKS) to increase oil production. Arifin said that there is still no certainty about global political dynamics with the conflict between Ukraine and Russia.

"The implementation of price CAP also has the potential to cause reduced supply of oil, gas and other energy, including imbalance in food supply," Arifn said in remarks to the CEO of Forum, quoted on Saturday, January 28.

Arfin continued, the condition in Indonesia experienced was the occurrence of a supply gap at lower oil energy than consumption.

Currently, energy consumption in Indonesia has tended to be normal, after the pandemic. We hope that oil and gas production can be considered and increased as much as possible, especially in the short term and has a precise strategy in the long term. From oil and gas production, it can be seen that there is a shortage every year of around 30 thousand barrels per day, if not overcome it will dive to a very extraordinary level, "said Arifin.

Arifin said that the Government had made efforts to encourage electricity conversion in the transportation sector which reduced oil consumption. However, conversion requires a process and cannot be fast because of the long chain. The hope is that the KKKS is currently operating in order to optimize its production.

"The government will provide support for efforts to increase oil and gas production. We are ready to provide doping (incentives) for the upstream oil and gas industry in order to optimize the program that has been set to increase national oil and gas production," explained Arifin.

"I hope the program can be followed and monitored properly which will produce achievements as expected. In 2023 we can do better than last year and before. Let's open a new work sheet that can have a positive impact on changes and effects for the national oil and gas industry," concluded Arifin. As far as you know, in 2023, SKK Migas targets oil lifting in 2023 of 660 million barrels of oil per day (MBOPD).