The Government’s Crude Oil Production Target Reaches 1 Million Barrels Per Day

crude oil

Indonesia has a tough task in the future because the government has a target to produce up to 1 million barrels of crude oil per day and 12 billion standard cubic feet of gas per day (bscfd) by 2030.

However, this must be taken because currently, Indonesia’s crude oil reserves are increasingly worrying.

The DPR RI noted that there are reportedly only 9-12 years of oil reserves in the country. This can happen if there are no new oil production discoveries. Currently, it is monitored that only 2.4 billion barrels remain of RI’s oil reserves.

“There are only 2.4 billion barrels of oil left. Imagine if you don’t find new ones, it will only take 9 to 12 years. This is our energy problem, our consumption is the same but the lifting is so much,” said the Head of Commission VII DPR, Sugeng Suparwoto, Thursday (22/12/2022).

However, currently, the consumption of fuel oil (BBM) by the people of Indonesia has reached 1.430 million barrels per day (BPD). Meanwhile, the lifting in the 2023 State Revenue and Expenditure Budget (APBN) only reaches 660 thousand BPD.

“The average oil production is only 630 thousand BPD. It is very vulnerable if you only rely on certain blocks. Already, the national lifting has fallen by 590 thousand BPD,” said Sugeng.

Currently, as is known, said Sugeng, Indonesia relies on the two largest oil blocks in Indonesia, namely the Rokan Block and the Cepu Block.

To support the production of kerosene, Sugeng said, it is necessary to complete the revision of the Oil and Gas Law (Migas Bill). Mainly concerning the legal legitimacy of the existence of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas).

“So the legal umbrella for SKK Migas, which is currently in the form of a Presidential Decree, must be under the law,” said Sugeng.

Furthermore, Secretary of SKK Migas, Shinta Damayanti said that supporting the goal of 1 million barrels of oil per day and 12 bscfd of gas in 2030 is not only the task of SKK Migas and the Ministry of Energy and Mineral Resources (ESDM) but also other related ministries.

For example, when exploration is carried out in the field and finally finding the results, it must be immediately determined who will be the beneficiary.

“Now the homework is when the exploration and meeting are carried out, who will use it and how connected it is, it is very PR. Of course not only the Ministry of Energy and Mineral Resources but of course also with other related ministries to ensure that the utilization can be channeled,” she said.