Indonesia Still Has More Than 800 Idle Oil Wells

oil Refinery

Indonesia’s natural potential is known to be enormous. The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) explained that there are more than 800 idle oil wells that need to be reactivated.

They are optimistic that they can complete the reactivation activities through workover work and well services until the end of 2022.

The successful reactivation of these idle wells is expected to provide additional oil production of 16,000 barrels of oil per day (BOPD).

As for 2023, SKK Migas is targeting as many as 1,086 idle wells for reactivation activities with an initial production estimate of 38,000 BOPD.

SKK Migas Exploitation Deputy Wahju Wibowo said the increase in idle well reactivation activities was one of the agreements in the coordination meeting (Rakor) evaluation of the implementation and planning of idle wells for 2022-2023.

The coordination meeting aims to evaluate the reactivation performance of Idle Wells in 2022, update data on idle well status data, and discuss issues and challenges of reactivation plans in 2023.

Currently, of the approximately 10,000 wells that meet the criteria for idle wells, SKK Migas has started to carry out reactivation activities aggressively since 2021 which reached 662 wells, an increase compared to reactivation activities in 2020 which were 326 wells.

In the 2022 work program & budget (WPnB), it was agreed to carry out the reactivation of 725 idle wells.

In addition, he also said that the seriousness of SKK Migas to encourage increased oil production through reactivation of idle wells is one of the agendas in The 3rd International Convention on Indonesian Upstream Oil and Gas (ICIUOG) which will be held in November 2022 in Bali.

In this activity, the signing of the Head of Agreement (HoA) batch 1 was carried out in cooperation with the strategic alliance reactivation of Pertamina Regional 1 idle wells with 6 Technology Providers.

As a follow-up to this coordination meeting, it is expected to stimulate efforts to optimize asset management so that those who are idle can return to operations and provide additional production.