The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) will increase national gas production to 12,300 million standard cubic feet per day / mmscfd. This will make Indonesia one of the world's major gas producers.
SKK Migas
Based on the national energy general plan (RUEN), gas production in Indonesia is expected to continue to decline due to a natural decline in the production rate of 20% per year.
However, during 2015-2019, SKK Migas was able to maintain gas production above the RUEN target. Last year, gas production was recorded at 7,254 mmscfd and lifting 5,923 mmscfd.
Dwi Soetjipto
SKK Migas Head Dwi Soetjipto is optimistic that national gas production will continue to rise going forward. This is after the discovery of spare parts of gas in the Sakakemang Block and the completion of the Masela Block revised plan of development / POD last year. Along with achieving the target of 1 million barrels per day (BPD) of oil production in 2030, gas production will also increase to 12,300 mmscfd.
"The completion of the Masela Refinery Project and the main upstream oil and gas project, as well as the discovery of other new oil and gas fields, will make Indonesia again one of the world's major gas producers," Dwi Soetjipto said.
SKK Migas has four strategies to increase national oil and gas production. In particular, SKK Migas will maintain the high level of existing production, the transformation of resources into production, accelerate enhanced oil recovery / EOR, and exploration to find large oil and gas reserves. At present, SKK Migas has identified 12 areas that have the potential to contain large amounts of oil and gas.
"With the details of 6 areas in western Indonesia, 4 areas in eastern Indonesia, and 2 areas in the deep sea," Dwi said.
Meanwhile, referring to data from the Ministry of Energy and Mineral Resources (ESDM), there will be an additional gas supply of 3,806 mmscfd in 20212017, namely pipeline gas 1,898 mmscfd and liquefied natural gas (LNG) 1,907 mmscfd. This gas supply comes from the 192 mmscfd JambaranTiung Blue Project in 2021 and the 400 mmscfd Corridor and Jabung Block in 2022.
In 2023, additional gas will come from the 300 mmscfd Sakakemang Block of Cendana and Alas Tua 60 mmscfd, the Kasuri Block 197 mmscfd, and the 100 mmscfd Indonesia Deepwater Development (IDD) Project.
the Nunukan Block
Furthermore, other projects contributing to boost Indonesia's gas production are the Nunukan Block 90 mmscfd in 2024, the Natuna Block 230 mmscfd in 2025 and 2028, the Tangguh Refinery Train3 725 mmscfd in 2022 and 2026, and the Masela Block 1,512 mmscfd in 2027.
the Natuna Block
According to Dwi, project completion main upstream oil and gas and Mega Masela Project will make Indonesia again become one of the world's major LNG producers.
"This can increase the contribution of upstream oil and gas to the increase in supply for the national industry and to supply world LNG needs so that it will further increase the country's foreign exchange," he explained.
He added, Indonesia had the opportunity to become a major supplier of global LNG again. For information, Indonesia has been the largest LNG exporter in the world since 1977.
However, along with the decline in national gas production and the government's policy to prioritize domestic gas utilization, Indonesia's contribution to the LNG market continues to decrease. However, this national gas production will not be entirely exported after increasing drastically.
"This supports the Government in increasing the competitiveness of domestic industries with the availability of gas supply," Dwi said.
Separately, Acting Director-General of Oil and Gas at the Ministry of Energy and Mineral Resources Ego Syahrial stated that the current government policy is to transform energy from oil dominant to gas dominant.
"In the future, gas will become the future of green energy along with renewable energy. The transition from fossil fuels to gas is a solution for today's global challenges, "he said.
In addition to encouraging increased gas production, his party is also increasing the development of gas infrastructure to meet the growing domestic gas demand.
"We also want to ensure and maintain that upstream gas activities remain attractive to investors," Close Ego.
Investor Daily, Page-9, Thursday, March 5, 2020
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