JAKARTA (TheInsiderStories) — During January to April 2019, investment realization for upstream oil and gas recorded at US$3.17 billion, or only 21 percent of this year’ target, as stated by Special Task Force for Implementing Upstream Oil and Gas Business Activities, Thursday (05/09).
The low reserve replacement ratio is caused by the most exploration projects that haven’t get plan of development’ approval and delayed the investment plan. So far, the investment realization is mostly used for drilling. So far, the body reported, there are 16 wells that have been drilled, higher than last year’ realization.
The task force chief Dwi Soetjipto said, this year, the State institution targeting upstream oil and gas investment worth of $14.79 billion. There are also additional oil reserves as well as existing 10 plan of development.
Raw oil lifting production target is also projected hard to achieve target. Until April, the realization of oil and gas lifting is 1.8 million barrels oil equivalent per day (bpd), consists of 750,000 bpd oil lifting and gas 5,909 mmscfd.
In the 2019 State Budget, the oil and gas lifting target is 2.025 million bpd with 775,000 bpd oil lifting. But, Soetjipto said that there are some blocks suffered declining production sooner-than-expected. So he admitted that it is hard to chase the state budget target.
Lifting oil and gas is projected to increase given the existence of 11 main projects that will on stream in 2019. He stated: “With additional production reaching 13,587 bpd and 1,172 MMscfd, we are optimistic that the lifting target can be achieved at the end of the year.”
Soetjipto explained, one project that has been on stream in 2019 is the Terang Sirasun Batur Phase 2 Project by the Kangean Energy Indonesia with an estimated production of 120 MMscfd and an investment of $214 million.
There are five projects with actualization above 60 percent that are expected to be on stream in semester one and five other projects that will be on stream in the second semester of 2019.
The proven exploration activities have been proven since 2018 to 2019, 16 exploration wells have been drilled with an estimated total investment of $170 million.
Looking at exploration discoveries up to April there were five exploration wells that managed to find hydrocarbons, namely the Pauman-1, Benewangi-J1X, Randuwangi-1, MSBY-03, and KBD-2X wells. These new discoveries will certainly support oil and gas lifting in the future.
Furthermore, he explained, there is $38.1 million additional investment from certain working commitment in Jambi Merang. Accumulatively until 2026, there will be $2.16 billion additional investment for exploration and exploitation. Among those, $1.14 billion has been allocated for exploration.
Soetjipto said, since 2018, the agency has done exploration roadshow to six countries, promoting 10 giant field areas. The task force even encouraged massive exploration activities by establishing Indonesia Oil and Gas Institute, last month.
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