The realization of upstream oil and gas investment in 2022 is the highest in the last seven years since 2016, reaching US$12.3 billion.
Heaptalk, Jakarta — Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) recorded that investment for upstream oil and gas in 2022 reached US$12.3 billion, an increase of 13% from 2021 of US$10.9 billion. This attainment exceeds global investment which only increased by an average of 5%. Investment in 2022 has also exceeded accomplishments before the Covid-19 pandemic in 2019 which was recorded at US$11.7 billion.
Head of SKK Migas Dwi Soetjipto said, “The realization of upstream oil and gas investment in 2022 is the highest in the last seven years since 2016. The efforts to improve the investment climate for the upstream oil and gas sector have shown significant progress and competitiveness.”
This accomplishment cannot be separated from the support provided by the government in the form of incentives and other facilities. “We are also more active in picking up the ball, carrying out promotions, and not waiting for investors to come,” said Dwi at a press conference in early 2023 in Jakarta (01/18).
The increment in upstream oil and gas investment indicates the transformation carried out by SKK Migas since 2019. “The increased achievement of national upstream oil and gas investment in 2022 shows that the national upstream oil and gas industry has gained confidence that this industry will be sustainable. For 2023, the investment target for upstream oil and gas is US$15.5 billion, an increase of 26% compared to realized investment in 2022, which is higher than the increase in global investment which is 6.5%,” said Dwi.
Exploration activity spike
Further, the increment of benny lubiantara skk migasinvestment in 2022 has a positive impact on increasing exploration activities and the main upstream oil and gas activities. Deputy Exploration for Work Area Development and Management Benny Lubiantara said exploration activity has increased constantly since the decline due to the Covid-19 pandemic in 2020.
“In 2020 the number of exploration wells drilled was 21 wells with an investment value of US$0.5 billion. Then in 2022, the number increased to 30 exploration wells with an investment value of US$0.8 billion. The target for 2023 is US$1.7 billion to drill 57 exploratory wells,” said Benny.
“If in 2020 the number of exploration wells drilled was 21 wells with an investment value of US$ 0.5 billion, then in 2022 it will increase to 30 exploration wells drilled with an investment value of US$ 0.8 billion. The target for 2023 is US$ 1.7 billion to drill 57 exploratory wells,” said Benny.
Replacement of produced reserves are realized above 100% since 2011. This accomplishment is essential as a foundation for increasing national oil and gas production in 2030 to achieve oil production of 1 million barrels per day (BOPD) and gas of 12 billion cubic feet per day (BSCFD).
Deputy Exploitation Wahju Wibowo said that the drilling activities for development, workover, and well service wells have increased. Drilling activities on the development well have reached 760 wells, an increase of 158% compared to 2021 of 480 wells. The number of development wells drilled in 2022 is the most in eight years since 2015.
However, the oil and gas lifting has not reached the target as it is constrained by several factors, one of which is the high number of unplanned shutdowns. In this regard, SKK Migas has conducted a maintenance audit and preparation steps for its implementation. Better production facilities are expected to support massive program activities in 2023.
