Both Production Increase and Emission Reduction must be Maintained, Says Energy Minister at the 45th IPA Convention

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 301.Pers/04/SJI/2021

Date: 1 September 2021

Both Production Increase and Emission Reduction must be Maintained, Says Energy Minister at the 45th IPA Convention

The government is finalizing the National Grand Energy Strategy which two key items, namely oil and gas production increase and carbon emission reduction, must go together, Minister of Energy and Mineral Resources (EMR), Arifin Tasrif, has said at the 45th Indonesia Petroleum Association (IPA) Convention and Exhibition on Wednesday (1/9). Representing President Joko Widodo, Arifin opened the event which is held in a virtual format for the second consecutive year.

Arifin urged contractors of oil and gas Production Sharing Contracts (PSC) to increase their exploration activities in a bid to meet the oil production target of 1,000,000 BOPD and gas production target 12 BSCFD by 2030. "All industry players in the upstream oil and gas business must execute extraordinary strategies," Arifin emphasized.

As one of the critical sectors in the economy, the upstream oil and gas industry is still the driving force of the national economy. It encourages the start of other economic activities. On the other hand, energy transition remains a major concern for Arifin. "The current energy policy in the world is towards clean and renewable energy, which will gradually replace fossil energy. For this reason, a measurable transition process is needed, while during the transition period, the oil and gas still play a strategic role," said Arifin.

Simplifying regulations, continued Arifin, can help improve upstream oil and gas organization so as to lure investors into Indonesia. "Through the issuance of the Job Creation Law and the formation of the Ministry of Investment/BKPM, the government is trying to increase the attractiveness of investing in Indonesia, so we hope that additional foreign direct investment flows into our country," explained Arifin.

Additionally, Arifin has adopted four strategies to fulfill the targets. Strategy number one is to maintain production levels. This is done by optimizing production in existing fields with good management, effective and efficient work programs, fast and effective transition of oil and gas block transfers, and reactivation of unproducing fields.

Two, resource-to-production transformation, which is carried out by supervising and controlling a field's plan of development, accelerating the monetization of undeveloped fields, and developing non-conventional oil and gas blocks.

Three, acceleration of further phases of production, including secondary and tertiary recovery. The government encourages PSC contractors to establish strategic cooperation with companies that have the competence and experience in the development and implementation of EOR.

Finally, improvement and acceleration of exploration activities. The government encourages the integrated acquisition and improvement of oil and gas data quality to support the exploration and investment in the upstream oil and gas activities.

"These (efforts) are needed to realize the national energy independence, so we can reduce both crude oil imports and carbon emissions," Arifin concluded. (IY)

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