The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) noted that the realization of ready-to-sell oil production (lifting) until last September reached 706 thousand barrels per day (BPD) or exceeded the Revised State Budget target of 705 thousand BPD.
Until the end of the year, SKK Migas is optimistic that it will be able to keep oil lifting from falling below the target.
Head of SKK Migas Dwi Soetjipto said that the realization of national oil and gas lifting until the end of last September was very good, namely, 1.68 million barrels of oil equivalent per day / BOEPD or 99.6% compared to the APBN target of 1.69 million BOEPD. This achievement was supported by oil lifting which exceeded the target even though gas lifting was still under pressure from the decline in gas demand due to the Covid-19 pandemic.
"Oil lifting reaches 706 thousand BPD or 100.17% of the APBN-P. Meanwhile, gas is 5.502 million standard cubic feet per day / MMScfd or 99.03% of the target of 5,506 MMScfd, "he said.
As a result of the Covid-19 pandemic, he admitted, the implementation of oil and gas operations was not as expected. As of September, the realization of new development wells was 188 wells or only 48 percent compared to the target of 395 wells. By the end of the year, the number of development wells drilled is estimated to be only 252 wells, lower than the realization in 2019 of 322 wells.
Meanwhile, the realization of the workover activities was very good. As of September, the realization of workover activities was recorded at 444 wells or 53% of the target of 837 wells and is projected to reach 603 wells by the end of the year. Likewise with well maintained, which realized 18,746 activities or 67% of the target of 28,151 activities and is projected to reach 25,184 activities by the end of the year.
"Workover and well service are still very good because they involve current oil and gas production," Dwi explained.
He added that the main impact of the pandemic on exploration activities. As of September, his party noted that the realization of 3D seismic activities only reached 918 square kilometers (km2) or 27% of the target of 3,421 km2 and the realization of exploration wells was only 19 wells or 51% of the target of 37 wells. Only 2D seismic activities were very good, namely, 26,929 km realized from the target of 28,324 km.
Dwi admitted efforts to optimize oil and condensate production was not easy. From the start of the proposed cooperation contract (KKKS) for this year's oil production of 673 thousand BPD, his party managed to secure a commitment at the level of 707.2 thousand BPD.
However, due to the impact of the Covid-19 pandemic, there was a decline in the production of 32 thousand BPD so that oil production remained at 704 thousand BPD. His party then sought an additional 2.9 thousand BPD. Furthermore, for gas, his party managed to obtain additional production from the absorption optimization of 70 MMScfd.
Additional absorption comes from the East Kalimantan System of 21 MMScfd, West Natuna Transportation System (WNTS) 17 MMscfd, Grissik-Singapore 29 MMscfd, and Medco Malaka 3 MMscfd. So that, until the end of the year, his party is still projecting oil and gas lifting on target.
"The outlook until the end of the year with various problems remains 705 thousand BPD for oil and 5,502 MMScfd for gas," Dwi said.
Maintain Investment
Dwi continued, globally, the Covid-19 pandemic and the fall in crude oil prices had an impact on reducing investment by oil and gas companies. Until the end of September, his side recorded that the realization of upstream oil and gas investment was US $ 6.9 billion, or only 50 percent of the US $ 13.8 billion targets. However, at the end of the year, he is optimistic that upstream oil and gas investment could reach the US $ 11.1 billion or 80.44% of the target.
Investor Daily, Page-10, Monday, Oct 26, 2020
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