Page 8 - AsianOil Week 46 2021

AsianOil SOUTHEAST ASIA AsianOil

Indonesia unveils three-

pronged upstream strategy

POLICY INDONESIAN upstream regulator SKK Migas
has unveiled its three-pronged upstream strategy
to boost national oil and gas production in line
with the government’s 2030 target.
Ahead of the regulator’s second annual
international oil and gas conference IOG 2021
– to be hold on November 29-December 1 –
event chairperson Luky Agung Yusgiantoro
said the forum would focus on ways for the
upstream industry to reached the 2030 pro-
duction target of 1mn barrels per day (bpd) of
oil and 12bn cubic feet (340mn cubic metres)
per day of gas.
Yusgiantoro told reporters on November 17
that the agency had developed a strategic road
map for the upstream sector which should help
realise the government’s upstream ambitions.
The official said the plan would focus on three
areas: optimising existing production, using
chemical enhanced oil recovery (EOR) to bolster
reserves and promote oil and gas exploration.
He added: “[Large-scale] oil and gas explo-
ration will also be carried out based on in-depth The government slashed the country’s 2021
studies, increasing the acceleration of the licens- production target after several upstream projects
ing process through a one-door service policy, as were affected by the coronavirus (COVID-19)
well as incentives for upstream oil and gas so that pandemic.
the competitiveness and investment climate of The country’s oil lifting targeting has been
Indonesia’s upstream oil and gas becomes more reduced from 705,000 bpd to 665,000 bpd, SKK
attractive.” Migas head Dwi Soetjipto said on October 19.
The head of IOG 2021’s programme, Rikky The gas lifting target was revised down from
Rahmat Firdaus, told reporters that time was of 5.64bn cubic feet (159.72mn cubic metres) per
the essence if the 2030 target was to be achieved. day to 5.53 bcf (156.61 mcm) per day.
“Nine years is not long, actually, to obtain Soetjipto said the country’s third-quarter oil
oil and gas requires survey activities that lead to production of 661,000 bpd had fallen around
drilling. This will take time, so we must carry out 20,000 bpd short of predicted output. The coun-
activities to achieve this target from now on,” he try’s gas lifting amounted to 5.49 bcf (155.48
said, before adding: “The state budget in 2021 mcm) per day.
was [targeting] 705,000 bpd. This target alone is Yusgiantoro said this week that ramping up
already a challenge.” production was of national importance given
that domestic consumption was expanding in
line with economic growth.
He said: “Since 2004, Indonesia has become
a net oil importer country and is expected in the
next few years, if no breakthroughs are made, to
also become a net gas importer. Therefore, addi-
tional energy supply from national oil and gas
production is needed to bridge the consump-
tion-production gap, which in turn can save for-
eign exchange needed for oil and gas imports.”
Yusgiantoro said another goal of the IOG 2021
event was to provide a forum for international
stakeholders to share their insights and help shape
the course of the country’s upstream industry.
The official said: “Hopefully we can get a lot
of useful insights for the future of Indonesia’s
upstream oil and gas sector and provide ben-
efits related to the oil and gas industry for the
participants.”™

P8 www. NEWSBASE .com Week 46 19•November•2021