The main program of upstream oil and gas in 2022 is predicted to exceed the targets as the progress of program implementation increases from the third quarter to the present.
Heaptalk, Jakarta — The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) collaborates with Cooperation Contractors (KKKS) to complete the drilling of 616 development wells, an increase of 165% compared to drilling until October 2021 which produced 373 wells. The drilling of development wells until October 2022 beat the achievement in 2021, namely 480 wells.
“SKK Migas and KKKS have worked hard and made extraordinary efforts in running the massive and aggressive work program 2022 to maintain oil and gas production through development well drilling, workover, and well service activities. As of October 2022, what has been done by SKK Migas and KKKS has exceeded the achievements of the same period last year,” said Head of SKK Migas Dwi Soetjipto at the 3rd International Convention on Indonesian Upstream Oil and Gas 2022 at the Nusa Dua Convention Center, Bali (11/25).
Upstream oil and gas performance can also be indicated by workover and well-service activities. As of October 2022, workovers have been carried out for 542 wells, or 115% higher than the same period in 2021 of only 472 wells.
Meanwhile, well services have also been carried out for 25,020 wells until October 2022, 135% exceeding October 2021 performance, which was only 18,690 wells. Well-service activities up to October 2022 indicate more work than the realization throughout 2021 of only 22,790 wells.
Dwi is optimistic that the realization of the main upstream oil and gas program in 2022 will exceed the targets set in the work, program, and budget (WPnB) 2022 as the progress of program implementation increases from the third quarter to the present. At the convention forum in Bali, Dwi expressed his appreciation for the KKKS’s support in running an aggressive work program to maintain the level of oil and gas production at the best level.
“The realization prognosis for drilling development wells in 2022 is 800 wells or higher than the plan in the WPnB 2022 of 790 wells. We estimate that the realization of workover activities in 2022 will reach 629 wells and well service activities of 30,012 wells or above the workover target of 581 wells and 29,582 for well service,” added Dwi.
To support the implementation of the drilling program, currently, there are 40 operating rigs, 30 of which are onshore and 10 offshore. The total drilling investment reached US$1.73 billion (YTD) from the outlook of US$1.98 billion and the projection in the 2022 WPnB of US$2.66 billion.
Unplanned shutdowns lead to loss of oil and gas production
Massive activities in the drilling of development wells, workover, and well service deliver a positive impact on increasing oil and gas production even though the production is still lower than last year. This is due to the frequent occurrence of unplanned shutdowns throughout 2022 which lead to the loss of production opportunities with large volumes.
The high frequency of unplanned shutdowns with a high impact on lost production has resulted in additional oil and gas production from drilling development wells unable to withstand the decline in oil and gas production.
Dwi explained, “The high frequency of unplanned shutdowns is due to old production facilities and other reasons. In response to this, SKK Migas has conducted maintenance audits for several KKKS which are deemed to have a high risk of an unplanned shutdown.”
He added that SKK Migas has also updated the standard operating procedures related to production facility maintenance activities. His parties are also increasing the intensity of higher monitoring offline and online monitoring through the integrated operation center (IOC). Therefore, Dwi is sure that the frequency and loss of production opportunities can be reduced in 2023.
“For 2023, we are optimistic that oil and gas production will increase, supported by increasingly reliable production facilities, as well as plans for a more aggressive and massive upstream oil and gas work program. Currently, based on identification in Pre WPnB 2023, the number of development wells in 2023 could reach 1,063 wells,” explained Dwi.
Onwards, SKK Migas will continue to push for even more massive work programs and better management of production facilities to operate more effectively. “Through a combination of these two moves, we are optimistic that in 2023 the trend of oil and gas production will increase again from this year, and we are committed to taking the best steps in increasing oil and gas production to achieve the 2030 oil production target of 1 million barrels per day ( BOPD) and 12 billion cubic feet of gas per day (BSCFD) gas,” Dwi concluded.
