Let's clean up amid the COVID-19 pandemic, the price of oil is now at a stable level
Tarakan (ANTARA) - It is projected that by 2030, national oil production could reach one million barrels per day (BPOD) and 12,000 MMSCFD for gas, to support national energy security.

The upstream oil and gas industry has an important role in Indonesia's economy to date because in addition to providing the main source of energy for oil and gas, it is also an economic locomotive with multiple impacts.

State revenues in the oil and gas sector have tended to decline in recent years. The reason is, apart from falling oil and gas production and aging fields, as well as the downward trend in world oil prices.

Currently, the exploration of the oil and gas industry is increasingly being enhanced, especially after at PT Pertamina Hulu Energi (PHE) Jambi Merang, the Cooperation Contract Contractor (KKKS) under the supervision of the Special Task Force for the Implementation of Oil and Gas Business Activities (SKK Migas) has completed a two-dimensional (2D) survey. Jambi Merang Firm Work Commitment (KKP) in an open area.

With experts from the Pertamina Exploration Directorate and seismic experts from PT Elnusa Tbk (ELSA) who were transported using the Elsa Regent ship, PHE Jambi Merang completed a 2D seismic survey of 32,200 kilometers or 107.3 of the 30,000 kilometers set target.

The Jambi Merang 2D seismic survey in the offshore area is the largest exploration activity for the past decade, as it passes through Seram to Natuna waters. The survey covers 35 basins from 128 basins in Indonesia. Currently, Indonesia has 128 basins, there are still 68 basins that have not been explored to reduce dependence on imports.

The Ministry of Energy and Mineral Resources (ESDM) also targets the Refinery Development Master Plan Program (RDMP) in Dumai, Balikpapan, Balongan, and Cilacap. For new refineries or Grass Rott Refenery (GRR) in Bontang and Tuban will be completed in 2027.

The government will make policy alignments so that the oil and gas investment climate can attract investors, including through the freedom to choose a cooperation contract scheme (PSC), where between the PSC for gross results (Gross Split) or PSC for returning operating costs (Cost Recovery) .

Meanwhile, a national entrepreneur, owner of PT Saratoga Investama Sedaya Tbk, Sandiaga Salahuddin Uno, said that to achieve the national oil production target of one million BPOD and 12,000 MMSCFD, there are short-term, medium-term and long-term strategies.

The short-term strategy is to apply new technologies to wells that are currently producing in order to increase their production using secondary and tertiary recovery methods.

The application of this technology can be carried out in producing wells such as in the ex Chevron, Rokan, Mahakam blocks and several blocks that have produced the top five oil and gas production in the archipelago.

"With the application of technology and investment with new recovery techniques, it will be able to increase production (oil and gas, ed.) In the short term," he said when contacted from Tarakan, Saturday (31/10).

Also read: Repeating the glory of a million barrels by 2030 

The medium-term strategy, said Sandiaga, who has been a candidate for Vice President of the Republic of Indonesia for the 2019-2024 period, suggests conducting a three-dimensional (3D) seismic survey on blocks that will be explored as well as blocks that have been explored, as well as sporadic drilling for ensure an increase in oil and gas production.

In the long term, we must be careful about the sustainability of the oil industry at a price of 40-45 US dollars per barrel and must have an approach to catching up with current production or increasing production on a gradual scale.

Sandiaga also suggested a long-term strategy by opening up exploration in new blocks and providing incentives for production that was somewhat choked up, such as the Masela block and the Indonesia Deep Water Development (IDD) block which had been constrained by reforms, the bureaucracy of the laws and regulations.

"By encouraging exploration in new reserves (blocks, red.), We will increase Original Oil in Place (OOIP), from impossible to probable reserves, and from probable to prubent, after being researched it will become a guarantee to increase our oil and gas production, "he said.

Labor

To increase oil and gas exploration to achieve national oil reaching one million BPOD and 12,000 MMSCFD for gas requires labor of the nation's children in its implementation, either directly or indirectly.

Sandiaga suggested that SKK Migas should be able to produce and develop exploration and production of sustainable oil reserves and be able to open the widest possible job opportunities and need creative ideas.

"I happen to follow this industry in detail (oil and gas, ed.), I have a lot of applicable notes and are waiting for collaboration with SKK Migas, yesterday it started with a webinar," he said.

However, the latest collaboration from SKK Migas is needed to be sustainable, to become the oil and gas sector as the locomotive of Indonesia's development by opening the widest possible employment opportunities, increasing income, and accelerating economic recovery.

The classic problems faced by the oil and gas industry, namely regulation, among others, lack of incentives, land that always haunts economic problems in Indonesia. It is hoped that there will soon be structural regulations and improvements will be made.

This is in accordance with the mandate of the 1945 Constitution Article 33 paragraph 3 which reads "The land and water and natural resources contained therein are controlled by the state and used for the greatest prosperity of the people".

The interests of the Indonesian people today are employment opportunities and the oil and gas industry is an industry that opens up the widest and fastest possible job opportunities.

“In my opinion, this is our homework. Let's clean up in the midst of the COVID-19 pandemic, the price of oil is now at a stable level. We create an economic model with the adaptation of new habits and create the widest possible field for economic recovery, "Sandiaga said.

Meanwhile, the Indonesian Army also supports upstream oil and gas activities to achieve the oil production target of one million BPOD and 12,000 MMSCFD of gas to maximize the potential for industry revenue which can reach 470 billion US dollars.

Also read: Withstanding the impact of COVID, the government provides 9 stimulus for oil and gas investment 

TNI AD Chief of Staff General Andika Perkasa in Jakarta, Thursday (16/7), said the TNI supports upstream oil and gas activities, in which it plays a role in helping the security of several KKKS.

As quoted from the 2020 Annual Report Book, Jokowi-Ma'ruf's One Year Commemoration: Awakening for Advanced Indonesia reads “Equitable energy policies remain a concern for the justice of the Indonesian people. To achieve the vision of energy security, the government has a way to keep investment in this sector exciting. "

Meanwhile, the achievement of Indonesia's oil and gas lifting (production ready to sell) in the third quarter of 2020 in the SKK Migas report reached 100.2 percent or 706.2 thousand BOPD of the target. Revised State Revenue and Expenditure Budget (APBN-P) of 705 thousand BPOD.

Until September 2020, oil and gas lifting was recorded at 1,689 thousand barrels of oil equivalent per day (BOEPD) with details of oil lifting of 706.2 thousand BPOD and gas lifting of 5,502 MMSCFD or 99.3 percent of the APBN-P target of 5,556 MMSCFD.

SKK Migas also launched four strategies to support the Long Term Plan (LTP), namely Improving Existing Asset Value, Resources to Production (R to P), Enhanced Oil Recovery (EOR) and exploration.

Has completed 2D seismic surveys in an open area of ​​25,150 kilometers and an active working area of ​​1,779 kilometers, so that the current total is 26,929 kilometers.

Also read: Oil and gas lifting reaches the target in the third quarter of 2020 Read also: Oil and gas challenges are getting tougher, GM PHM: We must be optimistic 
 
Also read: HoA Block Rokan signed, Minister of Energy and Mineral Resources: Milestone to maintain oil and gas production 

By Susylo Asmalyah
Editor: M. Atmoko Day
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