JAKARTA, KOMPAS.com – Indonesia’s upstream oil and gas regulator (SKK Migas) and oil and gas contractors (KKKS) have agreed to carry out various measures in achieving the country’s oil and gas lifting target next year.
Previously, the government set this year’s oil and gas lifting target of 705,000 barrels per day (bpd) and 5.638 million cubic feet per day (mmcfd), respectively.
SKK Migas head Dwi Soetjipto said his office and top leaders in the KKKS have identified and tackled various challenges in the oil and gas production.
“In the discussions, the KKKS, among others, called for support in the area of licensing process, as well as for accelerated commercialization so that field development can be carried out immediately, and the transformation will be done quickly,” Dwi Soetjipto said in a statement September 23.
The former president director of state-owned oil and gas firm PT Pertamina (Persero) went on to say that KKKS suggested additional steps were needed to achieve the lifting target next year, which would still be overshadowed by global and domestic uncertainties.
“SKK Migas has invited KKKS to immediately submit its additional plans, and we will process it faster. We hope that all activities can be implemented at the start of 2021 so that the target can be achieved,” he said.
Meanwhile, Ministry of Energy and Mineral Resources' (ESDM) secretary-general Ego Syahrial called on SKK Migas and KKKS to work harder considering the current conditions have yet returned to normal due to the Covid-19 pandemic.
“SKK Migas and KKKS need to have the same view and make a greater effort in carrying out the ideal oil and gas operational activities,” Ego said.
The Government, he added, will maintain a conducive investment climate. This can be seen from the policy of providing incentives in upstream oil and gas business activities which will continue to be implemented.
“With the given incentives we hope that KKKS can focus on the operational activities to fill gaps, to achieve the target set by the government,” he said.
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