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Minister: Oil production decline because of old wells

Tempo - January 31, 2023

Riri Rahayu, M. Fais Zaki L Imaji Lasahido, Jakarta – Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif stated that the quality of oil wells in Indonesia is declining because of age. Arifin explained that these declines will certainly affect oil production in the future.

"Our oil wells are have matured and there are other factors that lead to loss of production, such as shutdown caused by unforeseen damages," Arifin said in a press conference on Monday, January 2023.

Therefore, Arifin said that the ESDM Ministry has gathered Joint Work Contractors to improve maintenance quality. In addition, steps will be taken inline with the most up-to-date method and preventive actions will be performed.

Earlier, the Special Task Force for Upstream Oil and Gas Business (SKK Migas) stated that they only able to achieve 612.3 thousand barrel oil per day (BOPD) in 2022 in term of oil lifting. On the contrary, the target for the production of oil and gas was set at 703 thousand BOPD.

Furthermore, for 2023, Arifin had set a target for oil lifting at 660 thousand BOP. Arifin espressed his optimism that there will be massive lifting as a result of massive drilling at Blok Rokan. Moreover, Arifin said that there are indications of increased production from Blok Cepu and new oil fields at Kedung Keris.

"Efforts to optimize natural resources from Blok Cepu and Blok Rokan, must be supported to optimize [production] other than with other work areas," Arifin said.

Source: https://en.tempo.co/read/1685810/minister-oil-production-decline-because-of-old-well