- The Minister of Energy and Mineral Resources, Arifin Tasrif ("Minister") has affirmed that the government is currently preparing various strategies for Indonesia to ultimately achieve the determined oil-and-gas production target of 12 billion standard cubic feet per day (BSCFD) by 2030.
- In terms of the short-term strategy, the Minister has addressed that the government aims to boost production from existing fields using enhanced oil recovery ("EOR") technology. This short-term strategy includes the following initiatives: 1) Drilling more than 1,000 development wells annually; 2) Reactivating between reactivating 1,000 to 1,500 idle wells each year; and 3) Expediting the execution of chemical enhanced oil recovery ("CEOR") in Minar Area 2, steam flooding in Rantau Bais, and simple surfactant application in Balam South.
- Meanwhile, the Minister has affirmed that the medium-term strategy aims to transform responsibility to protect (R-to-P) and fully implement EOR and waterflooding techniques. This medium-term strategy includes the initiatives that expedite the following projects: 1) 125 new Plan of Development ("POD"), Open Period License (OPL), and Open Period Licensing and Land (OPLL) projects; 2) POD of 58 undeveloped discoveries; and 3) 55 CEOR fields and waterflooding initiatives through strategic alliances, full-scale EOR in Minas, and encouraging upstream oil and gas investments from China into Indonesia.
- Ultimately, in terms of long-term strategy, the Minister has addressed that such initiative will be focusing onto the exploration and development of unconventional oil-and-gas resources. In this regard, such long-term strategy will include the following initiatives: 1) Drilling exploratory wells by targeting giant prospects at an average rate of 54 wells per year; and 2) Establishing partnerships with major international business actors.
- In relation to the above strategies, the Minister has affirmed that achieving the abovementioned production targets by 2030 is a significant challenge, particularly given the declining oil-and-gas output in Indonesia due to dwindling reserves and technical exploration challenges. Such condition has had a considerable impact on national energy security and the financial balance of the country. (ANT)
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