Indonesia’s new energy strategy entails attracting oilfield services providers with the latest technology to help the Southeast Asian country revive and increase production from ageing or idle wells.
With a reform enacted, oil and gas block operators in Indonesia will be allowed to partner with drilling and service technology providers to raise production from old wells or oilfields, the country’s deputy energy minister Yuliot Tanjung said on Tuesday, as carried by Reuters.
Currently, Indonesia produces about 600,000 barrels per day (bpd) of crude oil. Its goal is to boost the output levels to 1 million bpd by 2030.
“Many of these operators need partnership from vendors that have the latest technology,” the deputy energy minister said at a news conference today.
There could be as many as 2,500 wells and over 100 fields that could see a partnership with technology service providers.
The authorities are also looking to award dozens of new oil and gas blocks to reach the production goal.
Indonesia is now preparing to offer 74 new blocks to companies, according to the deputy energy minister.
Earlier this year, Indonesia awarded five strategic oil and gas blocks to international and domestic players in a bid to reverse its decade-long production decline and bolster national energy security.
The awards are part of Indonesia’s broader upstream revival strategy, with nearly 60 additional blocks expected to be offered over the coming years.
“The government hopes these auction winners will be able to contribute to Indonesia’s energy security ahead,” said Tri Winarno, a senior official at the Ministry of Energy and Mineral Resources.
Once a key OPEC member and oil exporter, Indonesia has increasingly relied on imports to meet domestic energy demand in recent years. Indonesia quit OPEC in 2016 when the cartel struck a deal with non-OPEC producers led by Russia to withhold supply to the market via producers in the OPEC+ pact, reducing their production.
By Charles Kennedy for Oilprice.com
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