The deputy minister said that every block in the work area will undergo accelerated exploration.
One of them is Banyu Urip Infill Clastic (BUIC), Cepu Block, Bojonegoro, East Java. The block, which is managed by ExxonMobil Cepu Limited (EMCL), has increased production by 30 thousand barrels per day.
“The four explorations that we are doing produce production of around 30 thousand barrels per day. So, for other work areas, it is almost the same, we will encourage increased exploration,” Tanjung said at the Banyu Urip Field on Thursday.
Next, the government will use technology such as enhanced oil recovery (EOR) through horizontal fracking in work areas that have experienced a decline in production.
Related news: Oil output at Cepu Block up 30,000 barrels per day
In addition, the ESDM Ministry will accelerate the offering of work areas. Currently, 61 work areas have been offered to entrepreneurs.
In terms of regulation, the government is ready to re-evaluate all mining activity regulations in the upstream oil and gas sector. Furthermore, it will review the incentives given to businesses.
“We are also looking at the incentives for increasing production, whether they are sufficient, or whether additional incentives are needed for business actors. So, we will perfect the incentives that we have given to business entities,” Tanjung informed.
The licensing procedure for upstream oil and gas activities will also be shortened and integrated with several other services, he said.
“So, business actors in carrying out these activities will be faster and more efficient in entering production activities,” he added.
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Translator: Maria Cicilia Galuh Prayudhia, Cindy Frishanti Oct
Editor: Rahmad Nasution
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