Govt may achieve oil production target

Govt may achieve oil production target

Oil drilling at one of Pertamina's rigs (Dokumentasi Pertamina)

Everything can be achieved if the government and cooperation contract holders (KKKS) are consistent in implementing a business plan and work plan and budget (WPNB) every year
Jakarta (ANTARA) - The government's target of raising oil production to one million barrels per day (bopd) in 2025 could be achieved with the support of relevant parties, Executive Director of Energy Watch Mamit Setiawan said.  

"Everything can be achieved if the government and cooperation contract holders (KKKS) are consistent in implementing a business plan and work plan and budget (WPNB) every year," he said in a written statement released Tuesday.

The government's support for KKKS is essential to deal with any obstacle in the implementation of the program, he said.

To achieve the target, the government also needs to accelerate the revision of Oil and Gas Law Number 20 of 2001, among others, he said.

"KKKS need legal certainty to invest in Indonesia. Right now everything is half-hearted, so KKKS should exercise more caution to invest since the oil and gas industry is capital-intensive and very risky," he said.

Besides, the government also needs to accelerate the process of cheaper enhanced oil recovery (EOR) since the cost of EOR technology is still high, he said.

"This is for the government to consider. Don't let KKKS develop EOR which will later prove uneconomical, except if the government has its own calculation for those developing EOR and their production increases," he added.

The other effort needed to achieve the target is accelerating the approval of Plan of Development (POD) by the Upstream Oil and Gas Regulatory Task Force (SKK Migas), he said.

"Without the approval of the POD, KKKS will not be able to move forward so the production will come to a standstill," he said.

To increase production, not just oil drilling but also massive activities are needed to realize Work Over and Well Service (WOWS), he said.

"We have a large potential to drill the existing wells. It is a matter of how we could increase the production," he said. (INE)

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