Here are Indonesia’s Efforts to Reach 1 Million Barrels Oil Target by 2030

Indonesia’s Efforts to Reach 1 Million Barrels Oil Target by 2030

We all know that 2021 is quite a challenging year for the oil and gas industry. However, Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif hopes that this year can be proof of the industry’s resilience.

“I ask that Special Task Force for Upstream Oil and Gas Business Activities Republic of Indonesia (SKK Migas) can oversee the upstream oil and gas strategic plan. So that oil and gas production target Indonesia’s in 2030 to reach 1 million barrels oil per day, and 12 thousand mmscf of natural gas per day can achieve,” said Arifin.

Arifin also conveyed four main strategies that need to be carried out and pursued by all upstream oil and gas industry players in achieving the target by 2030.

First, maintaining the current production level through optimization of production in the existing field.

“Through good management, the implementation of aggressive, massive and effective and efficient work programs, the fast and effective transition of the work area over management, as well non-production sectors’ reactivation, are the keys to restraining natural production’s rate decline in various oil and gas fields with mature conditions,” said Arifin.

The second effort is through contingent resources’ transformation into production through good supervision and control of the approved field development plan to accelerate the fields’ monetization that hasn’t developed.

“In addition, special attention is need for non-conventional oil and gas development in Indonesia,” he added.

Third, accelerate the implementation of advanced production, both secondary and tertiary recovery, which is expected to provide additional contributions to national oil production. To achieve the goals in 2030, several Enhanced Oil Recovery  (EOR) projects must be plan and execute immediately.

“The government also encourages contractor partnership contract (KKKS) to establish strategic cooperation with other parties who have competence and experience of EOR’s development and implementation,” said Arifin.

The fourth effort is the improvement and acceleration of exploration. This is a strategy that is less important in efforts to increase national oil and gas production.

“The government will continue to encourage increased acquisition and quality of oil and gas data in an integrated manner. This step can support upstream oil and gas exploration and investment activities in Indonesia,” said Arifin.

In addition, the implementation of definite work commitments (KKP) in open areas and open access to upstream oil and gas data is an effort key to increase upstream oil and gas exploration activities in Indonesia. Arifin asked SKK Migas to continue improving upstream oil and gas governance to be more efficient, to achieve maximum targets.