JAKARTA (TheInsiderStories) - The Special Task Force for Upstream Oil and Gas Business Activities (SKKMigas) said oil production from the Banyu Urip field is targeting to contributes 30 percent of the total national oil production in this year. The wells located in Cepu block in East Java and operated by ExxonMobil Cepu Ltd.
According to the chairman, Dwi Soetjipto, in hearing with the parliament today, in 2021 the oil production from the Cepu block around 219,860 barrels per day (bpd) and gas about 55.16 million standard cubic feet per day (MMSCFD). The position of the block had played a major role to boost the national oil and gas production in 2021.
After reached the peak production, he said, the Cepu Block oil production could drop to below 150,000 bpd in 2023 and continues to decline under 100,000 bpd by 2030. To preven the sharp decline, his office has a number of main strategies, included good reservoir management, monetization of untreated gas, optimization of field development and insertion drilling, clastic formation development, and development of the surrounding fields, namely Cendana and Alas Tua.
Earlier, the energy and mineral resources (EMR) ministry reported that the national oil and gas reserves only lasted for 9.5 years, assuming the oil production figures 700,000 bpd per year. The minister, Arifin Tasrif, said the assumption based on the proven and potential reserves as of last year was 4.17 billion barrels and proven reserves were 2.44 billion barrels.
While, the existing natural gas reserves are sufficient in 19.9 years, assuming no new reserves are discovered. In detail, proven and potential gas reserves reach 62.4 trillion cubic feet (TCF) and proven reserves of 43.6 TCF.
To reached one million bpd in 2030, the ministry would continue to encourage the implementation of massive exploration. In this year, the country will auction around 68 unexplored offshore oil and gas basins to attract new investment in these sector. Tasrif explained the government has targets to represent 24 percent of its energy mix by 2050 and completing master plans for the six refineries at the country.
He expect with this programs will increase the processing capacity of crude oil from 1 million barrels per day (bpd) to 1.9 million bpd. Indonesia would also expand its gas pipeline infrastructure to meet the domestic demand for power plants and supply the electricity to remote islands in the region, he adds.
In this year, Indonesian government offered 10 oil and gas working areas in this year, said the official on Wednesday (08/05). The projects include direct offers for five working areas and others in regular auctions. The 10 oil and gas working areas are spread across Kalimantan, Java and Papua Island.
In details, five direct offering are Merangin III (onshore), Sekayu (onshore), North Kangean (offshore), Cendrawasih VIII (offshore), Mamberamo (onshore and offshore) with potential 1,203.69 Million Barrels of Oil (MMBO) and 586.9 billion cubic feet (BCF). Through a regular auction with potential 2,232.75 MMBO and 4,420 BCF are West Palmerah (onshore), Wangkas (offshore), Liman (Onshore), Bose (onshore and offshore), and Maratua working areas (onshore and offshore).
To improve the upstream oil and gas investment climate, said Syahrial, the ministry has issued EMR Ministerial Decree Number 12 of 2020 concerning gross split Production Sharing Contracts (PSC). For new working areas being auctioned, as well as those that will expire, the option is to be able to use the form of PSC with the cost recovery or gross split mechanism or other forms of cooperation contracts.
Written by Editorial Staff, Email: theinsiderstories@gmail.com
