Page 10 - AsianOil Annual Review 2021

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Indonesia seeks

upstream solutions

Upstream regulator SKK Migas is working with the country’s contractors to boost
production, but near-term forecasts of additional output are far from encouraging.

SOUTHEAST ASIA ANOTHER quarter of missed production SKK Migas’ deputy head of operations, Julius
targets has sent the Indonesian government Wiratno, said other production initiatives could
WHAT: scrambling for a strategy that will help reverse add another 11,900 bpd to this figure. Between
The government has the ongoing decline and set the country on the two projects, he said, production is likely to
urged the upstream a path towards achieving its ambitious 2030 rise by 9,103 bpd on average.
industry to work harder. output goal. “After two days of discussing with [contrac-
Upstream regulator SKK Migas revealed on tors] in focus group discussions the production
WHY: April 6 that first-quarter production averaged and lifting targets for 2021, we have agreed on
Indonesia missed its 1.86mn barrels of oil equivalent per day (boepd), tactical and strategic steps that can be imple-
first-quarter oil and gas which was 99.2% of the set target. The watchdog mented so that there is an increase in identi-
production target. has set an oil production target of 705,000 bpd fied potentials,” local daily Valid News quoted
for this year, while natural gas output is expected Wiratno as saying.
WHAT NEXT: to reach 5.64bn cubic feet (152.13mn cubic He added: “There is still a gap that
The country’s 2030 metres) per day. must be met in order to reach the target of
production targets are However, in signs of increasing concern 705,000 bpd, but we are optimistic that we
now in question. about the country’s upstream prospects, the can achieve this target.”
Indonesian government has weighed into the The deputy head of the regulator, Fatar Yani
conversation, publicly naming projects and com- Abdurrahman, said SKK Migas was committed
panies it wants better performance from. And in to simplifying business processes to help com-
doing so, Jakarta has revealed seemingly for the panies speed up their decision making around
first time that there are grave production issues at production projects.
the country’s largest oilfield, Banyu Urip. “To ensure the things that have been agreed
upon can be realised, good commitment and
Strategy scramble collaboration is needed between all interested
Scrambling to devise a viable upstream strategy, parties,” he noted.
SKK Migas announced on April 8 that it had Abdurrahman called on oil and gas con-
devised, in partnership with the country’s oil and tractors to do their part to help bolster pro-
gas contractors, a strategy to boost national oil duction, saying: “What is needed next is the
production this year by a worryingly small 3,500 seriousness of the contractors to realise its
barrels per day (bpd). programme.”

P10 www. NEWSBASE .com Annual Review 2021