RI Oil Production Continues to Fall, What is the Role of SKK Migas? News – 17 minutes ago

Jakarta, CNBC Indonesia – Until now, national oil production has not shown a significant increase. In fact, the government has a production target of 1 million barrels of oil per day and 12 bscfd of gas by 2030.

Chairman of the Aspermigas investment committee, Moshe Rizal, assessed that the decline in national oil and gas production needs to be a matter of collective concern.

Therefore, he also encouraged the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) as the regulator in the upstream sector, to simplify the processes that Cooperation Contract Contractors (KKKS) need to go through. Especially in carrying out its activities in Indonesia.


“It is necessary for SKK Migas to take back its role as holder of mining authorization rights, namely being responsible for processing permits and land acquisition, KKKS as the name suggests is only a government contractor who is responsible for all technical matters and also funding,” said Moshe to CNBC Indonesia, Monday (6/11/2023).

Separately, ReforMiner Institute Founder & Advisor Pri Agung Rakhmanto assessed that SKK Migas’ role is more about supervision. Especially regarding the management and operational aspects of existing work areas or oil fields, as well as how to facilitate the running of upstream oil and gas operational activities.

“So, again, it depends on what type of field is being managed. If the field is mature, it will definitely only be able to halt the rate of decline in production,” said Pri.

Furthermore, Pri Agung explained that the current decline in national oil production was caused by several factors. One of them is because Indonesia’s oil and gas production still relies on old fields.

Therefore, the increase in crude oil prices on the global stage will not have a significant effect on increasing production. However, an increase in oil prices will help from an economic perspective.

“What will increase production is if there is investment and production from new fields on a large scale, such as those in the class of the Cepu or Rokan Blocks, for example. The exploration or EOR efforts must first be successful in large fields of that class, then production will be able to increase,” Pri said.

As is known, national oil production has not yet shown a positive upward trend. Even though the change of year from 2023 to 2024 is getting closer.

Quoting data from the Ministry of Energy and Mineral Resources, average oil production as of November 4 had only reached 571,280 barrels per day (bpd). Meanwhile, the government has set an oil lifting production target in the 2023 APBN at the level of 660 thousand bpd.

[Gambas:Video CNBC]

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