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Medco’s Corridor Block exceeds state budget target in 2022 gas lifting
The Upstream Oil and Gas Special Regulatory Taskforce (SKK Migas) reports that oil and gas lifting results in the Corridor Block in South Sumatra has far exceeded the 2022 State Budget (APBN) expectations.
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Workers oversee the drilling of the first geothermal well for Medco Power Indonesia's 110MW plant near Ijen volcano in East Java. (Medco Power Indonesia/Medco Power Indonesia)
T
he Upstream Oil and Gas Special Regulatory Taskforce (SKK Migas) reports that oil and gas lifting results in the Corridor Block in South Sumatra have far exceeded the 2022 State Budget (APBN) expectations.
Currently managed by Medco E&P Grissik Ltd, the Corridor Block is deemed the second largest contributor in Indonesian gas lifting achievements, making the block’s performance influential toward the country’s gas balance.
As of Dec. 31, 2022, SKK Migas noted that gas lifting from the block had reached over 770 million standard cubic meters per day (mmscfd) or 107 percent above the 2022 State Budget target of 725 mmscfd.
Meanwhile, oil-lifting from the block had reached over 6,200 barrels of oil per day (bopd).
"Amid high world gas prices of course these achievements not only strengthen the national gas balance, but also provide more state revenue to develop this country and of course stronger trust in local firms in managing the upstream oil and gas industry," said SKK Migas deputy for finance and commercialization, Kurnia Chairi, in a press statement on Monday.
Kurnia added that the overall oil and gas infrastructure in South Sumatra had been in very good condition and was integrated with buyers.
Given the increasingly strong role of gas in the energy transition era, as well as the promising potential of gas in Sumatra, Kurnia hoped that Medco E&P could continue to increase its production in the future to support the role of the oil and gas sector as a main source of state revenue.
Regarding this year’s target, Kurnia asked Medco E&P to carry out intensive coordination with SKK Migas to achieve the 2023 State Budget target and contribute more to the long-term target of increasing national oil and gas production by 2030.
The government has set the target for oil production in 2030 at 1 million bopd and gas at 12 billion cubic feet per day (bscfd).
Medco E&P VP relations and security Arif Rinaldi said the Corridor Block always prioritized workers’ safety and continued to maintain operational reliability.
"We hope that in 2023 the synergy between Medco E&P and SKK Migas can provide the best performance in the management and development of the Corridor Block," said Arif Rinaldi.
Indonesia’s oil consumption is forecast to more than double to 3.97 million bopd by 2050, according to SKK Migas data, while natural gas consumption is expected to more than quadruple to 26,000 mmscfd in the same time period.
The country’s oil industry hit its peak in the 1970s and 1980s when oil production exceeded 1 million bopd and oil exports drove economic growth.
However, production has been steadily declining, mostly due to aging wells and a lack of new discoveries and was last recorded at 616,600 bopd in June 2022, according to SKK Migas data.
