Until 2029, Indonesia Has 127 Upstream Oil and Gas Projects

Oil and Gas Blocks
Oil and Gas Blocks

Indonesia needs oil production. For this reason, 127 upstream oil and gas projects will be carried out in the 2023-2029 period. The value of the hundreds of projects reached US$ 2.97 billion or Rp 44.46 trillion.

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) noted that the 127 projects consisted of 46 projects that were offshore and 81 projects that were onshore.

This was confirmed by the Head of SKK Migas Dwi Soetjipto in a hearing with Commission VII, Wednesday (1/2/2023).

However, Dwi did not specify in more detail the upstream oil and gas projects to be carried out during this period. These hundreds of projects are expected to contribute to achieving the target of 1 million barrels per day and 12 million cubic feet of gas per day (MMSCFD).

Meanwhile, in 2023, Dwi targets there will be 9 onstream upstream oil and gas projects with an investment value of US$ 489 million.

The operation of all these projects will contribute to an increase in oil production by 17,077 barrels per day, and an additional gas production capacity of up to 567 MMSCFD.

In line with this, Indonesia needs oil production. Fortunately, Indonesia has also discovered a large number of potential oil reserves.

The potential oil reserves are in the Warim Block, Papua, which the Ministry of Energy and Mineral Resources has recorded at 25 billion barrels of oil and 47 trillion cubic feet of gas (TCF) above the gas production of the Masela Block which is estimated to reach 10.73 TCF.

Apart from the Warim Block, potential new oil reserves are also known to exist in the Seram Block, Maluku. SKK Migas noted that at least potential reserves reach 5 billion barrels.

Dwi hopes that if Indonesia focuses on these two potential findings and is successful, then this can increase oil reserves in the long term, including production.

As is well known, the target is 1 million barrels of oil per day (bpd) in 2030. Moreover, currently, Indonesia is on a trend of decreasing oil production.