Jakarta – With the rising world oil prices, the upstream oil and gas industry is asked to take advantage of this momentum to optimise the contribution of state revenues, officials said Tuesday (12/4). Special Task Force For Upstream Oil and Gas (SKK Migas) said in 2021, state revenues from upstream oil and gas reached USD 14.03 billion or 193 percent of the 2021 state budget target of USD 7.28 billion.
The 2022 oil lifting target will increase from the realisation in 2021, which will reach 703,000 BOPD (barrels of oil per day) and gas lifting of 5,800 MMSCFD (million standard cubic feet per day).
“This target is needed to increase production in the medium and long term, to reduce the current account deficit, maintain national energy security, and increase investment,” said Head of SKK Migas, Dwi Soetjipto, quoted from the SKK Migas website, Tuesday (12/4).
In terms of the Reserves Replacement Ratio (RRR), in 2021 there will be reserves discoveries of around 696 million barrels of oil equivalent in total. This pushed the RRR to reach 116 percent, which means the discovery of reserves is higher than the production level.
Meanwhile, oil lifting or processed production oil in 2021 was recorded at 660 thousand bpd, lower than the target in the 2021 state budget of 705 thousand BOPD. Meanwhile, the realisation of gas lines was 5,501 million MMSCFD, or lower than the 2021 state budget target of 5,638 MMSCFD.
Soetjipto said that the target of 1 million BOPD of oil and gas of 12 billion standard cubic feet per day (BSCFD) in 2030 can only be achieved with the support of all stakeholders. Various strategies are pursued to accelerate the realisation of the target of 1 million BOPD of oil and 12 BSCFD.
These include the inclusion of potential from unconventional oil and gas fields, optimising existing assets through well drilling, transforming resources into production, and optimizing the use of Enhanced Oil Recovery (EOR).
“SKK Migas continues to push for the acceleration of the production target of one million barrels of oil and 12 BSCFD (billion standard cubic feet per day) of gas, because oil and gas will continue (be) needed in development,” said Soetjipto. (Hartatik)
Banner photo source: SKK Migas
