Oil Lifting Exceeds Target for 3rd Quarter 2020

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 314.Pers/04/SJI/2020

Date: 24 October 2020

Oil Lifting Exceeds Target for 3rd Quarter 2020

The upstream oil and gas shows a positive performance through the realization of oil and gas lifting (ready-to-sell production) in the third quarter of 2020. Based on the report of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), the realization of lifting has reached 100.2 percent, or 706.2 thousand Barrels of Oil per Day (BOPD), from the target of 705 BOPD set in the Revised State Budget (APBN-P).

"This is positive news from the oil and gas subsector amid the Covid-19 pandemic which has pushed down global oil prices and field operations," said Head of Bureau of Communication, Public Information Services, and Cooperation of Ministry of Energy and Mineral Resources (EMR), Agung Pribadi in Jakarta on Saturday (24/10).

According to Agung, this success is due to the hard work of SKK Migas and Contractors of Cooperation Contracts (KKKS) of oil and gas to continue to boost exploration activities. "We appreciate the efforts of SKK Migas which have provided input to oil and gas contractors in the planning of exploration and exploitation activities and budget," he said.

Until September 2020, the oil and gas lifting was recorded at 1,689 thousand Barrels of Oil Equivalent per Day (BOEPD), consisting of oil lifting of 706.2 BOPD and gas lifting (distributed) of 5,502 Million Standard Cubic per Day (MMSCFD) or 99.3% of the target 5,556 MMSCFD set in the APBN-P.

To maintain the continuity of upstream oil and gas business activities, SKK Migas has launched four strategies to support its long-term plan (LTP), namely Improving Existing Asset Value, Resource to Production (R to P), Enhanced Oil Recovery (EOR), and exploration. Until September 2020, 2D seismic surveys had been completed in open areas of 25,150 kilometers (km) and in active working areas of 1,779 km, so that the current total is 26,929 km.

"We are waiting for data processing and the results of subsurface evaluation, whether or not there are open areas which are feasible to follow up by conducting exploration drilling in search of new sources of oil and gas in the next two or three years," said Head of SKK Migas, Dwi Soetjipto, at a virtual press conference on Friday (23/10).

In addition, 11 exploration wells have been drilled throughout the year 2020 with a success ratio of 55%. Targeting giant fields, 6 wildcat wells have been drilled and 2 wells have been confirmed to contain oil and gas.

Dwi added that SKK Migas has prioritized the activities to find new reserves of oil and gas. This is in line with the vision to produce 1 million BOPD of oil and 12,000 MMSCFD of gas by 2030.

"We do not want to feel content with the current achievement; therefore, we've set a long-term vision which strategy implementation has started since early this year. Although the impact of the COVID-19 pandemic and low oil prices have corrected the LTP by 2.7%, it is expected that by 2022/2023 we can continue with the original plan," said Dwi.

SKK Migas has also successfully speeded up the Plan of Development (POD) process. This is an effort to maintain oil and gas reserves with a target of Reserve Replacement Ratio (RRR) of 100 percent annually. As of September 2020, RRR has reached 69.6%, with 15 PODs completed and 514 Million Barrels of Oil Equivalent (MMBOE) of reserves added.

As to the completion of oil and gas projects, SKK Migas has completed 9 out of 14 projects that will be onstream this year. These nine projects will add production by 3,182 BOPD and 296 MMSCFD. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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