The Special Task Force for Upstream Oil and Gas Activities (SKK Migas) is pushing for massive exploration to pursue the upstream oil and gas (migas) investment target of US$15.7 billion or equivalent to Rp254 trillion (exchange rate of Rp16,195) by the end of this year.
Until the first semester of 2024, upstream oil and gas investment reached 5.6 billion US dollars or Rp90.6 trillion. This amount increased by 15% from the realization in 2023 and this is better than the increase in global investment which is around 5%.
“Our strategy for the past two years has been to encourage massive exploration by approaching investors and so on,” said Head of SKK Migas Dwi Soetjipto in a press conference on Upstream Oil and Gas Performance for Semester I 2024, Friday (19/7).
He mentioned to encourage the search for oil and gas reserves by optimizing chemical enhanced oil recovery (EOR) activities in several oil and gas fields. Chemical EOR is a method to increase oil production from wells by injecting special materials such as chemical compounds, so that oil that initially could not be lifted from the earth (reservoir) becomes produced.
“We are still pushing for Chemical EOR. We have the potential and several companies have experience in EOR. For example, Sinopec (an energy company from China), they are very interested. We will push for a strategic partnership with Pertamina,” he explained.
In addition, the main exploration activity carried out is by using 2D and 3D seismic technology to explore the presence or absence of oil reserves underground. Until the first six months of 2024, the realization of 2D seismic reached 2,609 km2 or around 86% of the target of 5,128 km2. For the realization of 3D seismic of 3,593 km2 or equivalent to 78% of the target of 6,643 km2.
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Meanwhile, Dwi continued, for exploration well drilling activities, 17 wells have been completed from the target of 21 wells in the first semester of 2024. Based on developments to date, it is estimated that the target of drilling 48 exploration wells can be completed in full.
“The drilling of exploration wells is expected to reach the target within this year, namely with 48 wells,” he added.
For the discovery of large gas from deep-sea exploration wells, continued the Head of SKK Migas, it was successfully obtained from the Tangkulo-1 Well, which is the second exploration well drilled by Mubadala Energy in the South Andaman Block this year. The Tangkulo-1 well successfully flowed 47 million standard cubic feet per day (mmscf/d) of quality gas and 1,300 barrels of condensate.
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Then, Pertamina Hulu Rokan in collaboration with SKK Migas conducted a drilling of the Pinang East-1 exploration well, Riau, last March. The oil reserves in the well are 2.53 million barrels of oil equivalent (mmboe).
“So, this gives an illustration that the mindset shift is not only looking for success, but efforts to encourage the achievement of the target of discovering large oil and gas reserves have occurred,” concluded Dwi.
Dwi further said that SKK Migas succeeded in adding contingent resources by 1,164 mmboe from the target of 152.5 mmboe or the realization reached 763%. For the reserve replacement ratio (RRR) or the oil and gas reserve replacement ratio, it has only reached 19%. However, it is estimated that in July 2024 it will jump to 114%. Meanwhile, the RRR achievement until June 2024 provides additional oil and gas reserves of 114.3 mmboe with an investment plan of 4.74 billion US dollars.
For the completion of upstream oil and gas projects that were successfully completed by June 2024, there were 8 projects out of 15 projects targeted by the end of 2024. In the first six months of 2024, state revenues from upstream oil and gas reached 7.6 billion dollars or equivalent to Rp114 trillion (2024 APBN exchange rate of Rp15,000). This amount exceeds the state revenue target in the 2024 APBN which was set as of June 2024 at 5.41 billion US dollars or around Rp81 trillion.
“We are optimistic that investment in 2024 will be higher than in 2023,” Dwi concluded. (N-2)
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