Indonesia Is Optimizing Non-Conventional Oil and Gas

The Government of Indonesia through the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) continues to develop Indonesia’s assets in the Non-Conventional Oil and Gas (MNK) form.

Head of SKK Migas Dwi Soetjipto said flexibility and aggressiveness were needed in supporting the target of 1 million barrels of oil per day by 2030. One of them is through the provision of incentives for non-conventional oil and gas development.

In terms of the unconventional oil and gas potential, SKK Migas noted that Indonesia has considerable potential to be developed.

“We are already facing a new potential in Indonesia, namely non-conventional oil and gas whose reserves are quite large and have been eyed by foreign investors,” said Dwi, quoted Monday (25/7/2022).

According to Dwi, non-conventional oil and gas development itself can no longer refer to the fiscal terms that are currently intended for conventional oil and gas development. So it is necessary to improve so that it is economical to develop.

“Because it’s so much different, it must be anticipated that if there is a legal umbrella, it will be big,” he said.

Plt. Head of the Program and Communications Division of SKK Migas, Mohammad Kemal, previously said that at least now there is potential for MNK in three regions in Indonesia. Among them is the central part of Sumatra, namely the Rokan Block, North Sumatra, and East Kalimantan.

“At present, the largest non-conventional oil and gas is in the Rokan Block which has the largest oil potential. Then there are also in North Sumatra and East Kalimantan, but they are still small,” he said in a Sharing Session and Media Education for the Upstream Oil and Gas Industry, Tuesday in Tangerang. , Tuesday (19/7/2022).

The estimated prospective resources of MNK in the three regions for oil alone is a total of 6.3 billion barrels. Meanwhile, gas reached 6.1 trillion cubic feet (TCF).

“But it’s in place, meaning that if there’s an original in a place name, from original in place it’s because there is a permeability factor, that porosity factor will have a multiplier factor, how many times are the reserves from original oil in place,” he said.

Furthermore, Kemal said that in principle this MNK has potential, but its development requires a new method. So that to be developed, efforts are needed that are very efficient and need support from the regulatory side.