Deputy Minister of Energy and Mineral Resources (ESDM) Yuliot Tanjung is aiming to achieve the target of raising oil production to one million barrels per day by 2029 by expediting exploration across Indonesia.
The deputy minister said that all of the blocks in the work area will be subject to expedited exploration.
One of the blocks included in the work area is Banyu Urip Infill Clastic (BUIC), Cepu Block, Bojonegoro, East Java. The block that is operated by ExxonMobil Cepu Limited (EMCL) has raised the production of oil by 30 thousand barrels per day to achieve the 1 million barrels of oil production by 2029
“The four explorations that we are doing produce production of around 30 thousand barrels per day. So, for other work areas, it is almost the same, we will encourage increased exploration,” Tanjung said at the Banyu Urip Field on Thursday.
Also, the government would apply technology such as enhanced oil recovery (EOR) by horizontal fracking in work areas to achieve the 1 million barrels of oil production by 2029. The technology will be used in the areas that have suffered declining production.
Besides that, the Ministry of ESDM will speed up the provision of working areas. Now, 61 working areas have been provided to businessmen.
On the regulatory side, the government stands ready to review all regulations related to mining activity in the upstream oil and gas industry. In addition, it will audit the incentives provided to the companies.
“We are also looking at the incentives for increasing production, whether they are sufficient, or whether additional incentives are needed for business actors. So, we will perfect the incentives that we have given to business entities,” Tanjung informed.
Licensing process for upstream oil and gas activities will also be expedited and combined with some other services, he added.
Additionally, “So, business actors in carrying out these activities will be faster and more efficient in entering production activities,” he added.
