Indonesia Energy Ministry: Four Efforts to Reach the Target of 1 Million Barrels of Oil in 2030

The year 2021 will be quite a challenging year for the oil and gas industry. However, Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif hopes that this year can be a year of proving the resilience of the upstream oil and gas industry in maintaining oil and gas production.

“I ask that SKK Migas can oversee the upstream oil and gas strategic plan, so that Indonesia’s oil and gas production target in 2030 to reach 1 million barrels of oil per day and 12,000 mmscf of natural gas per day is achieved,” said Arifin in his speech after inaugurating SKK Migas Deputy Planning Benny Lubiantara in Ministry of Energy and Mineral Resources Office, Tuesday (27/7).

Arifin also conveyed four main strategies that need to be carried out and pursued by all upstream oil and gas industry players in achieving the 2030 target.

“First, maintaining current production levels through optimization of production in existing fields. Through good management, implementation of aggressive, massive and effective and efficient work programs, fast and effective transition of Work Areas over management, as well as reactivation of non-production fields, are key. to restrain the rate of natural production decline in various oil and gas fields with mature/brownfield conditions ,” said Arifin.

The second effort, he continued, is through the transformation of contingent resources into production through good supervision and control of the implementation of the approved field development plan to accelerate the monetization of fields that have not been developed.

“In addition, special attention is also needed for the development of unconventional oil and gas in Indonesia,” he added.

Third, accelerate the implementation of advanced production, both secondary and tertiary recovery, which are expected to provide additional contributions to national oil production.

“To realize the goals in 2030, several EOR projects must be immediately planned and executed. The government also encourages KKKS to establish strategic cooperation with other parties who have competence and experience in developing and implementing EOR,” said Arifin.

The fourth effort is the improvement and acceleration of exploration. This is a strategy that is no less important in efforts to increase national oil and gas production.

“The government will always encourage increased acquisition and quality of oil and gas data in an integrated manner so that it can support upstream oil and gas exploration and investment activities in Indonesia,” said Arifin.

In addition, the implementation of definite work commitments (KKP) in open areas and open access to upstream oil and gas data are also key efforts to increase upstream oil and gas exploration activities in Indonesia.

At the end of his speech, Arifin asked SKK Migas to continue to improve upstream oil and gas governance to be more efficient and effective, so as to achieve maximum targets.