Jakarta - There is an ambitious target for oil production to fulfil domestic needs. Although, it still needs to import around 1 million BOPD.
Indonesia has set ambitious targets to achieve oil production of 1 million barrels per day and natural gas production of up to 12 billion cubic feet (BCF) by 2030. The target is not just a dream, but a realistic goal that is expected to maintain national energy security and reduce dependence on imports.
However, the road to achieving this is not without obstacles. Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia conveyed this important message when inaugurating Djoko Siswanto as Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), on 7 November 2024.
Djoko, who is experienced in the oil and gas sector, is expected to be able to encourage an increase in Indonesia's lifting or oil and gas production, which is currently still in the range of 600,000 barrels per day. Currently, Indonesia's oil consumption reaches around 1.6 million barrels per day (BOPD). Meanwhile, domestic oil production is still far below this figure.
This means that Indonesia still has to import around 1 million BOPD to fulfil domestic needs. According to Bahlil, this big challenge is the main homework for Djoko Siswanto.
Indonesia needs a breakthrough to increase oil lifting, which has long been below target. This year, for example, the lifting target set in the 2024 State Budget is 635,000 BOPD. The realisation is only at 576,000 BOPD. Similarly, gas production only reached 5,301 million standard cubic feet per day (MMSCFD) from a target of 5,785 MMSCFD.
Djoko Siswanto, who was recently appointed, is not new to the oil and gas sector. With more than three decades of experience, Djoko has a strong background in oil and gas exploration and production.
He began his career as a Petroleum Engineer at PT Sarana Putra SSMakmur in 1990, and has since held various important positions, including as Director General of Oil and Gas at the Ministry of Energy and Mineral Resources and Secretary General of the National Energy Council.
Djoko, who graduated from Petroleum Engineering at the Bandung Institute of Technology (ITB) and earned his doctorate in the same field, is believed to bring deep technical insights and an extensive network in the oil and gas industry.
With his background and experience, the government expects Djoko to be able to break through various obstacles in increasing national oil and gas lifting.
Breakthrough Steps
To achieve the oil and gas production target of 1 million BOPD and 12 BCF of gas, several breakthrough steps need to be taken. First, optimisation of idle wells. There are 16,990 oil and gas wells that are currently idle, and 4,495 of them have potential hydrocarbon content. "I ask Djoko to immediately coordinate with the Cooperation Contractors (KKKS) to maximise the potential of these wells," he said, giving a speech during the inauguration.
Second, the development of potential oil and gas structures. SKK Migas noted that there are 301 oil and gas structures with a potential of 1.8 billion barrels of oil (Bbo) and 13.4 trillion cubic feet (Tcf) of gas that have not been developed. "Utilisation of these structures will be one of the main efforts in increasing lifting."
Third, the implementation of Enhanced Oil Recovery (EOR) and Waterflooding. SKK Migas has identified 12 fields that have great potential for the application of EOR and waterflood technology. This step can increase the lifting potential to 951 million barrels of oil (MMbo) which can increase production reserves.
Fourth, the completion of pending PoD (Plan of Development) projects.
Currently, there are 74 fields that have PoDs. However, they have not yet entered the production stage due to various constraints. These fields have the potential to produce 153 million barrels of oil and 5.3 Tcf of gas that have yet to be utilised.
Fifth, reactivating inactive fields and wells. SKK Migas noted that there are 203 inactive fields with production potential of 122 million barrels of oil. These fields and wells can be re-utilised with technological support and better coordination.
From a number of problems above that hinder the increase in production, obstacles in the field in the form of extreme weather and natural obstacles are also an obstacle to boosting production.
According to Head of Programme and Communication Division of SKK Migas Hudi Suryodipuro, one of the major obstacles in increasing lifting is natural factors. Extreme weather and flooding often hamper drilling and well maintenance activities. In addition, some oil and gas projects also face delay on stream, or delays in the production process.
"SKK Migas continues to be committed to supporting the government's mandate in achieving the lifting target. Inventory of potential and constraints in the field continues to be carried out to accelerate various projects that have strategic value," said Hudi.
These breakthrough steps are not only aimed at pursuing the ambitious lifting target, but also at maintaining national energy security. By reducing dependence on oil and gas imports, Indonesia can be more independent in meeting domestic energy needs.
Djoko Siswanto is expected to be able to carry out his role effectively, strengthening collaboration between SKK Migas, KKKS, and various related parties. If the target of 1 million BOPD and 12 BCF of gas by 2030 can be achieved, Indonesia will not only strengthen its energy security but also potentially increase state revenue from the oil and gas sector.
Although this journey will not be easy, great expectations rest on the new leadership of SKK Migas to bring real change to Indonesia's energy future. (Indonesia.go.id)