Oil and gas production in Indonesia in 2022 is lower than in the previous year, nevertheless, the year 2022 has been quite an active and eventful year for the oil and gas industry in Indonesia. We saw several new platforms were installed and an old platform was decommissioned. Many development wells were drilled, and many idle wells were reactivated.
Here are synopses of oil and gas production, field development, and exploration activities in Indonesia in 2022, and what we can expect to see in 2023, according to SKK Migas.
The average daily oil production in 2022 is 612,300 BOPD. This is below its 2022 target and also below the actual oil production in 2021. The oil production target for 2023 is 660,000 BOPD.
The top three oil producers are ExxonMobil Cepu Ltd., Pertamina Hulu Rokan, and Pertamina EP. Here are the top 15 oil producers in Indonesia in 2022.
The daily gas production in 2022 is 5,347,000 MMSCFD. This is below its 2022 target and also below the actual gas production in 2021. The gas production target is 6,160,000 MMSCFD in 2023.
Operators drilled 760 development wells in 2022. This is slightly below its target of 790 wells. However, it is a big increase from the number of development wells drilled in 2021. The target of development drilling in 2023 is 991 wells.
Workovers and well services
Oil and gas operators carried out 639 well workovers and 30,299 well services in 2022.
Reactivation of Idle Wells
As one of the strategies to increase oil and gas production, 968 idle wells were reactivated in 2022. The target of idle wells that will be reactivated in 2023 is set at 1086.
Investment in oil and gas projects in 2022 amounted to 12.3 billion USD. This is below its 2022 target but is higher than the amount of investment in 2021. The target of investment in 2023 is 15.5 billion USD.
Reserves Replacement Ratio (RRR)
With 890 million barrels of oil equivalent of reserves added in 2022, the ratio of reserves replacement in 2022 reaches 156%. This is higher than the RRR of 116% achieved in 2021. The target RRR for 2023 is 100%. The two biggest new reserves came from the Hidayah field development and the rejuvenation of the Sanga Sanga field.
The Hidayah field is located in the North Madura II work area and is operated by Petronas Carigali. It has estimated oil reserves of 88 million barrels of oil.
Oil and gas operators in Indonesia drilled 30 exploration wells in 2022. This is higher than the 28 exploration wells drilled in 2021. The target of exploration drilling is set at 57 wells for 2023.
Twenty-two out of the twenty-seven completed exploration wells tested hydrocarbon. This represents an 81% success rate in exploration drilling.
2D Seismic Surveys
Oil and gas operators carried out 1950 KM of 2D seismic survey in 2022. This is below its target and the actual survey done in 2021. The target of the 2D seismic survey for 2023 is set at 1087 KM.
3D Seismic Surveys
3790 KM2 of the 3D seismic survey was conducted in 2022. This is below its target but higher than the actual survey done in 2021. The target of the 3D seismic survey for 2023 is set at 4602 KM2.
Unconventional Oil and Gas
Another strategy to increase oil and gas production in Indonesia is to explore the potential of unconventional oil and gas resources. Pertamina plans to drill two unconventional wells in 2023 in the Rokan work areas.
Strategic Oil and Gas Projects
Here are updates on the status of the 4 national strategic oil and gas projects.
1. Jambaran Tiung Biru – Gas production from the two unitized fields of Jambaran and Tiung Biru came on stream on 20 September 2022. It is considered a strategic project as it will supply gas to industries in Central Java and East Java.
2. Tangguh LNG train #3 – Train #3 of the Tangguh LNG plant is expected to come on stream in the first quarter of 2023.
3. The IDD project – The Indonesia deepwater development project is in the process of changing partnerships and operatorship.
4. The Abadi Masela project – Pertamina is in the process of acquiring the interest of Shell in the project. The project is expected to be completed in 2029.
As Indonesia is serious in its ambition to increase its oil and gas production, SKK Migas has set higher exploration and production targets for 2023. Also, the government has said that it will ratify the current oil and gas regulations to give stronger legal certainty to oil and gas investors and to attract more investments in 2023 and beyond.
We shall see an even more active and eventful year in 2023.
This article is adapted from the announcement made by SKK Migas on 18 January 2023. – Jamin Djuang