Head of the Upstream Oil and Regulatory Task Force (SKK Migas), Dwi Soetjipto, recently gathered CEOs of oil and gas contractors (KKKS) for a briefing in Jakarta, asking them to contribute for the increase in national oil and gas production.
In the meeting held on October 16, 2024, Dwi called on the 21 oil and gas contractors in attendance to have the sense of crisis and the sense of urgency over the stagnant oil and gas lifting in Indonesia. He conveyed the message sent by then President-elect Prabowo Subianto that oil and gas lifting must not decrease even by one liter.
“Increase in oil and gas lifting will depend on whether all main activities that contribute to increase in production can be carried out or not. If until now the well drilling activities, workovers and well services are still below target, then it will be difficult to increase oil and gas production,” Dwi said.
He cited that there are at least four main upstream oil and gas activities that have direct impact on increased oil and gas production, namely development of well drilling activities, well service, workover and upstream oil and gas projects.
This year, SKK Migas and KKKS have aggressively set the work, program & budget (WP&B) for the development of well drilling activities, well services and workovers as can be seen from the 17-percent target increase for development of well drilling activities, the 43-percent target increase of workover activities, and the 40-percent target increase of well service activities.
Dwi asked that the programs and funds that have been approved under the 2024 WP&B must be implemented optimally as production and lifting targets can only be achieved if all programs in the WP&B are implemented.
“We know that the year 2024 is only 2 months and a few days away, but we can compensate for this by implementing drilling, well service and workover activities better. In terms of process, you need to use technology, increase the number of human resources involved, and add the working hours so that every activity can be completed faster than normal working times,” he said.
He asked CEOs of oil and gas contractors to be more focused and seek breakthroughs so that activities that have an impact in increasing oil and gas production can be completed faster.
In the meeting, the CEOs hinted at potential for additional production that could support efforts to increase lifting. They expressed hopes that obstacles in the upstream oil and gas industry would be resolved.Â
He cited problems related to licensing, environmental impact assessment (AMDAL), overlapped agricultural land and forest areas, lack of support from local governments, gas infrastructure needed to flow gas from upstream to gas users.
