Lifting Set at 1 Million Barrels per Day in 2030, Govt Launches Concentrated Efforts

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 333.Pers/04/SJI/2020

Date: 4 November 2020

Lifting Set at 1 Million Barrels per Day in 2030, Govt Launches Concentrated Efforts

The government is committed to meeting a target of 1 million barrels of ready-to-sell (lifting) oil per day by 2030. For the oil and gas industry, this target is a challenge in itself because the Covid-19 pandemic has so far resulted in oil prices falling below USD30 per barrel and lower oil fuels consumption.

Minister of Energy and Mineral Resources (EMR) Arifin Tasrif said that the government's efforts to improve the investment climate for oil and gas subsector had been aimed to ensure energy access to all layers of society. "This is not an easy target, but with our joint efforts, Insya Allah (God willing), we can achieve the target. Therefore, we must manage the oil and gas subsector seriously," said Arifin during the 2020 Oil and Gas Safety Awards ceremony held online on Tuesday (3/11).

This long-term target is also accompanied by massive oil and gas exploration. Indonesia has 128 oil and gas sedimentary basins, 68 of which are unexplored and mostly located in the eastern part of Indonesia. "This is our way to overcome limited oil and gas resources in Indonesia so that we can reduce dependence on oil and gas imports," said Arifin.

Further efforts can be made by applying Enhanced Oil Recovery (EOR) technology. This method has been considered the most exploitative in helping old wells optimize their performance. In addition, Ministry of EMR will speed up refinery construction in Indonesia. "There are four RDMP (refinery development) projects and one new refinery construction with a completion target in 2027," said Arifin.

The government has also implemented a new policy for flexible oil and gas contracts. KKKS (Cooperation Contract Contractors) are free to choose a profit-sharing scheme of either Cost Recovery PSC or Gross Split PSC. "The selection should be based on the oil and gas field condition to be worked on," said Arifin. (IY)

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