Page 8 - AsianOil Week 33 2021

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Indonesia set to miss 2022 production targets
Upstream regulator SKK Migas has warned that major challenges remain that could prevent oil and gas production from reaching the government’s 2022 target
COMMENTARY
WHAT:
The government’s lifting targets of 703,000 bpd of oil and 1.03mn boepd of gas are likely to be missed.
WHY:
Indonesia’s oil and gas fields are in decline and the COVID-19 has hampered exploration efforts.
WHAT NEXT:
The regulator hopes that new projects this year and next will help keep the 2030 target within reach.
AFTER having warned that Indonesia’s oil and gas production was likely to miss government targets set for this year, upstream regulator SKK Migas has warned that a similar outcome is likely for next year.
The body’s operations deputy, Julius Wiratno, said this week that the coronavirus (COVD-19) pandemic would present a serious challenge to the government’s target of lifting 703,000 barrels per day of oil and 1.03mn barrels of equivalent per day of natural gas.
“The decline rate factor is still dominant, but maybe we will boost the existing and more aggressive work programmes,” The official noted told financial daily Bisnis on August 18.
In terms of reaching the government’s 2030 production target of 1mn bpd of oil and 12 bcf (339.84 mcm) per day of gas, Wiratno said the regulator would take steps to ensure that the tar- get was still achievable.
He said SKK Migas would strive to contain production decline rates, “because there hasn’t been a significant increase in oil discoveries to compensate for the natural decline, but gas will be more flexible.”
The country’s crude lifting amounted to 667,000 bpd in the first six months and SKK Migas has previously warned that output is only likely to reach the government’s 2021 target of 680,000 bpd.
But while SKK Migas is striving to temper expectations about production potential over the next year and half, the regulator remains optimistic about the country’s upstream poten- tial given new projects in the pipeline.
Project rework
SKK Migas said this week that two new pro- jects were in the process of coming onstream this month.
Saka Indonesia Pangkah Ltd (SIPL) is expected to bring the offshore Sidayu field onstream this month, the head of the regula- tor’s drilling division, Surya Widiantoro, said on August 19.
Widiantoro added that the successful re-en- try drilling at the Sidayu-4V well should deliver an additional 4,100-4,300 bpd of oil and 2.07mn cubic feet (28,600 cubic metres) per day of gas.
“Based on the last test we conducted on [August 17], the drilling results indicated higher production than the initial estimate,” the official said.
The production results came from the stimu- lation of the Kujung layers K1Z2 and K1Z3 and Widiantoro noted: “Previously, the production test on August 15 showed that production from the K1Z3 layer was 3,016 bpd and 0.8 mmcf [22,700 cubic metres] per day. But after acidis- ing has been done, the estimated production rate will increase.”
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w w w . N E W S B A S E . c o m Week 33 19•August•2021