The oil and gas industry is one of the sectors that has made a major contribution to energy security and national development since Indonesia first gained independence 79 years ago. In 2023, investment in the upstream oil and gas industry will reach US$13.7 billion or equivalent to Rp206 trillion, an increase of 13% from the realization in 2022.
Head of the Program and Communication Division (Prokom) of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Hudi D Suryodipuro said that for the past two decades or so, the upstream oil and gas industry has become the second largest contributor to state revenue after taxes, with a total of IDR 5,045 trillion.
“Our efforts to continue to find and develop new oil and gas reserves have succeeded in maintaining the Reserve Replacement Ratio (RRR) above 100% for six consecutive years. We have also completed major projects such as the Jangkrik Field, Jambaran Tiung Biru Field, and Tangguh Train 3. All of these are efforts to strengthen national energy security,” said Hudi at the commemoration of the 79th Anniversary of Indonesian Independence at the SKK Migas Head Office in Jakarta, Saturday (17/8).
Upstream oil and gas business activities, such as drilling and project execution, also contribute to creating a significant multiplier effect through the implementation of the Domestic Content Level (TKDN), which reaches 58% of total spending and the provision of employment for 150 thousand workers.
Furthermore, according to Hudi, in the commemoration of the 79th anniversary, the upstream oil and gas industry has made a real contribution to the nation and state. The real contribution includes the success of exploration performance with exploration findings in Geng North, Layaran, and Tangkulo which have placed Indonesia in the top position for exploration findings in Southeast Asia in the last two years.
“This finding proves that Indonesia’s subsurface potential is still very promising,” said Hudi.
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Second, efforts to increase oil production through production from Banyu Urip Infill Clastic or BUIC. Well B-13, the first well of this project, has produced oil on August 9.
“A few days ago we also witnessed the 1,000th shipment of crude oil from the Banyu Urip Field. We hope that the next 6 wells from the BUIC Project will soon follow so that the contribution of this project to further raise the profile of national oil production can be realized,” he said.
Hudi admitted that there are still challenges faced by the oil and gas industry in the future. National oil and gas production has not yet reached the set target. In addition, there is a very significant gap that must be bridged to achieve the Long Term Plan production target of 1 million BOPD and 12 BSCFD.
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“For 2024, from the LTP oil production target of 709,000 BOPD, new production has reached 579,000 BOPD. As for gas, the LTP target for 2024 is 6,736 MMSCFD, but current production has only reached 5,334 MMSCFD,” he said.
To answer these challenges, Hudi emphasized the importance of collaboration between oil and gas industry stakeholders.
“The collaborative mindset in carrying out this transformation work is very important, because we must move together for one goal. Sectoral ego attitudes will only distance us from achieving common targets,” he said. (Z-11)
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