SKK Migas: Oil and gas investment still increase until 2050

Jakarta – Domestic demand for oil and gas commodities continues to increase in line with national economic growth, according to the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas). In fact, according to the agency, by 2050, the volume of oil and gas consumption is expected to increase by 139 per cent and 298 per cent, respectively.

Head of SKK Migas, Dwi Soetjipto, said that investment support is needed so that exploration and development of oil and gas fields can be carried out massively. In 2022, investment in the upstream oil and gas sector could reach USD 12.3 billion, up 13 per cent compared to the previous year.

According to him, since 2021, investment in upstream oil and gas has continued to increase. As for this year, upstream oil and gas investment is targeted to reach USD 15.5 billion, up 26 per cent compared to last year. This target is higher than global investment growth (6.5 per cent) and SKK Migas’ Long Term Plan (LTP) which previously set a target of USD 13 billion.

SKK Migas continues to increase national oil and gas production, especially natural gas, due to its important role as a primary energy source during the transition to the use of clean energy through the achievement of the Net Zero Emission (NZE) target by 2030.

On the other hand, achieving the gas production target of 12 BSCFD also requires infrastructure support that is evenly distributed throughout Indonesia. Several national strategic projects are scheduled to start production before 2030, namely Tangguh Train 3, Indonesia Deepwater Development (IDD), and Abadi Masela. The three projects require a total investment of up to USD 38.58 billion with additional oil production of 65,000 barrels per day and gas production of 3,644 million standard cubic feet per day (MMSCFD).

According to Soetjipto, SKK Migas is targeting an investment of USD 186.7 billion to achieve an oil production target of 1 million barrels per day (BOPD) and natural gas of 12 billion standard cubic feet per day (BSCFD) by 2030. (Hartatik)

Banner photo: PT Pertamina Hulu Energi (PHE), as Pertamina’s Subholding Upstream, through PT Pertamina Hulu Energi Offshore North West Java (PHE ONW) managed to find oil and gas reserves from drilling the GQX-1 exploration well in North Java waters. (Source: Pertamina)

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