Indonesia's Oil and Gas Industry Still PromisingEnglish
The Special Unit for Upstream Oil and Gas Business Activities (SKK Migas) of Indonesia views that Indonesia still has great opportunities in the oil and gas business. The reason is that Indonesia has many basins, both offshore and onshore, covering an area of more than 460 thousand square kilometers.
SKK Migas Deputy Operations Julius Wiratno said there are 128 basins owned by Indonesia, but only 20 are producing basins. This can give an idea that there are still opportunities for the oil and gas industry in Indonesia.
As of March 31, 2022, SKK Migas recorded 172 contract areas, 95 production contract areas, and 77 exploration contract areas (including two work areas awaiting government policy and 26 work areas in the termination process).
Julius said that currently there are basins that have been drilled and hydrocarbons have been found, but have not been commercialized. The large potential of oil and gas basins still requires study, seismic, and other research.
He is also optimistic that oil and gas in Indonesia will not run out in the near future because these commodities are always found and there is still a lot of unexploited potential.
As of December 29, 2021, Indonesia's oil production has only reached 648 thousand BOPD. This achievement is far from the target set by the state budget of 703 thousand BOPD.