, pub-9591068673925608, DIRECT, f08c47fec0942fa0 Pertamina Encouraged to Accelerate the Realization of Upstream Oil and Gas Investment - MEDIA MONITORING OIL AND GAS -->

Pertamina Encouraged to Accelerate the Realization of Upstream Oil and Gas Investment

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) encourages Pertamina Group to accelerate the approval of upstream oil and gas investment. This acceleration is needed to meet the national oil lifting target this year, which was set at 705 thousand barrels per day (BPD).

Blogger Agus Purnomo in SKK Migas

    Head of SKK Migas Dwi Soetjipto said the realization of oil production by the end of March was recorded at 679.5 thousand BPD, so there is still a gap of 25.5 thousand BPD with a target of 705 thousand BPD. 

    This difference is due to the fact that the work programs of several cooperation contract contractors (KKKS) have not been realized, some of which are in the KKKS under the Pertamina Group. According to him, the difference in production from the Pertamina Group KKKS is around 10 thousand BPD.

"We are working hard to accelerate the work plan, especially in the second and third quarters. There is already a commitment from KKKS, including Pertamina, to accelerate implementation from the fourth quarter to the third quarter, so that it doesn't accumulate at the end of the year and the impact on production can be felt more quickly, "said Dwi.

    He said, the existence of organizational changes within the Pertamina Group through the formation of Upstream Subholding, had an impact on the implementation of the KKKS upstream work plan under the Pertamina Group. Primarily, related to the Final Investment Decision (FID) approval for the upstream work program.

    His party has discussed the delay in implementing this work plan with the management of PT Pertamina (Persero) as the Oil and Gas Holding and PT Pertamina Hulu Energi (PHE) as the Upstream Subholding. Pertamina has committed to be able to immediately provide investment approval and immediately resolve problems related to organizational changes.

"It has been said that starting this month there should be no more issues waiting for FID and this has been implemented. Pertamina has raised the investment limit that the subsidiary can make, ”said Dwi.

    This change will make the implementation of activities with a budget that is not too big to be smoother, including for drilling wells. PT Pertamina EP Communication Relations & CID Manager Hari Setyono said that his party remains committed to meeting national energy needs and supporting the achievement of targets set by the government. For this reason, Pertamina EP will increase the number of wells drilling this year to 131 wells.

"This amount represents the largest number of drilling in the history of Pertamina EP's operational activities," he said.

    Referring to SKK Migas data, there are three KKKS under the Pertamina Group whose oil production is still below the APBN target. In detail, as of last March, Pertamina EP oil production was recorded at 73,503 BPD or 86.5% of the target of 85 thousand BPD, PT Pertamina Hulu Energi OSES 24,030 thousand or 89% of the target of 27 thousand BPD, and PT Pertamina Hulu East Kalimantan 8,779 or 83. , 6% of the target of 10,500 BPD.

Pending Drilling

    According to Dwi, delays in the implementation of work programs also occurred in other KKKS, which in turn had an impact on the low realization of oil and gas lifting. In the first quarter of 2021, the realization of development wells still reached 76 wells, or 13% of the target of 616 wells. Then the realization of workover was only 143 wells or 23% of the target of 615 wells and well maintenance only 5,531 activities or 21% of the target of 26,431 activities.

    For exploration activities, 6 wells of the target of 48 wells were still drilled, 2D seismic survey of 1,349 kilometers (km) of the target of 4,569 km, 3D seismic of 263 square kilometers (km2) of the target of 1,549 km2, and G&G study of 62 activities from the target 116 activities.

"The development well is indeed at the beginning of the year for investment permits or FID and the procurement process has become late because it has only started in the current year in the future it will be repaired, "said Dwi.

    Another reason is that the production performance of several fields did not match forecasts, such as an increase in water content in the Banyu Urip and Sukowati Fields. Then there is the issue of facility integrity in the Offshore South East Sumatra (OSES) Block, X-Ray Field, and a leak in the North West Java Offshore Block.

    Finally, unplanned shutdowns at the Tangguh Papua Project, Suban Field, and the Jabung Block. However, he said that the acceleration of the implementation of the Pertamina Group and other KKKS work programs would help in pursuing the lifting target. 

    Moreover, the actual lifting has already exceeded 90%, namely oil lifting of 676.2 thousand barrels per day or 95.9% of the APBN target of 705 thousand BPD and gas of 5,539 million standard cubic feet per day / MMscfd or 98.3% of the target of 5,638 MMscfd.

"We will help with various kinds including FID approval, land acquisition, and environmental permits. We are working hard to be able to accelerate it, "said Dwi.

    The realization of oil and gas investment in the first quarter yesterday was not too high, namely US $ 2.4 billion or 19.4 percent of the target of US $ 12.38 billion.

"Efforts to attract investors will continue," he added.

    SKK Migas is working on a number of additional incentives for KKKS so that national oil and gas production can be higher.

Investor Daily, Page-10, Wednesday, April 28, 2021.


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