The Upstream Oil and Gas Regulatory Task Force (SKK Migas) on Friday, November 1, 2024, reassembled CEOs of oil and gas contractors (KKKS) for input sharing on products inventory and measures to increase volume of production.
The meeting with the KKKS CEOs, the second in 15 days, was held at the SKK Migas office in Jakarta and presided by the Head of SKK Migas Dwi Soetjpto.
In the meeting, Dwi specifically reminded the CEOs to implement of the Decree of the Minister of Energy and Mineral Resources No. 110/2024 on Guidelines for the Return of Untapped Work Areas in the Framework of Optimizing Oil and Gas Production.
In his direction, the Head of SKK Migas conveyed that one of the Government’s focuses is related to energy security, including the important role of oil and gas, so that efforts to increase production are very important.
“The enthusiasm of the CEOs to attend this meeting shows that SKK Migas and KKKS are on the same boat, with the same goal, i.e. production-production-production. I hope this enthusiasm can be implemented with real and concrete steps so that production can be increased,” he said.
Dwi added that there have been many facilities and incentives provided by the government so that oil and gas projects become economic.
“Therefore, we are waiting for breakthroughs from KKKS. We need to accelerate production increase, by optimizing the Work Area and minimizing the untapped ones,” he said.
He said further that there were several fields that had not yielded, Plans of Development (PoD) that had not been expanded onto production stage, and exploration findings that had not been followed up, especially in the Exploitation WK which only focused on the existing production.
Dwi added that there was potential that could still be developed. He cited there were 301 structures with the potential of 1.8 billion barrels of oil and 13.4 trillion cubic feet of gas that had not been developed.
In addition, there is potential for increased production from Enhanced Oil Recovery (EOR) & Waterflood activities. SKK Migas has mapped all existing potentials and will focus on implementing this technology on 12 fields with a potential recoverable resource of 951 million barrels of oil (MMBO).
Third potential is fields that are grouped under the Stranded POD category, which includes fields with an approved Plan of Development (POD), but whose implementation is hampered. Currently, there are 74 fields in this category that have a potential of 153 MMBO of oil and 5.3 TCF of gas, but cannot yet be utilized.
Fourth are idle fields and idle wells, namely fields or wells that are currently inactive, but still have the potential to be reactivated. Currently, there are 203 such idle fields with a production potential of 122 MMBOE.
“I ask each PSC Contractor to also re-evaluate and prepare a strategy so that it is in harmony with the SKK Migas strategy. PSC Contractors are targeted to be able to submit the inventory and follow-up strategy a maximum of 1 week after this meeting or the first week of November 2024,” Dwi said.
“In the future, SKK Migas will evaluate or even replace the management of the relevant KKS Contractor if they do not implement the work, program and budget on their assets. There should be no untapped potential reserves, the country should not be held hostage,” he concluded.
