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Aged oil wells behind Indonesia's declining production: Minister
According to data from the Finance Ministry, as of September, oil production stood at about 608,600 barrels per day (bpd). However, by the end of October, the energy ministry reported a decrease in production to 582,690 bpd.
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Oily business: Exploration takes place at the Kuala Simpang Barat (KSB) oil field, belonging to state-owned Pertamina EP Rantau Field, in Sriwijaya village, Tamiang regency, Aceh, on June 7, 2023. Indonesia’s aged oil wells are contributing to a decline in production, a minister has said. (Antara/Dede Harison)
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nergy and Mineral Resources Minister Arifin Tasrif has attributed the country’s declining oil production to the age and degradation of its active oil wells.
According to data from the Finance Ministry, as of September, oil production stood at about 608,600 barrels per day (bpd). However, by the end of October, the energy ministry reported a decrease in production to 582,690 bpd.
"So, indeed, our wells are already old. The age of the wells is a contributing factor. You see, as oil is pumped for an extended period, it goes deeper, and the proportion of water mixed in with it increases,” Arifin said at his office in Jakarta.
"In the past, if there were 10 liters of liquid from the wells, they contained nine liters of oil and one liter of water, now, after several decades, it's only half a liter of oil and half a liter of water."
He said the government was working hard to keep daily oil production steady by drilling old wells deeper and increasing production from non-conventional oil wells, such as in the Gulamo Field in Bangko district, Rokan Hilir regency, Riau.
Oil and gas expert Hadi Ismoyo believed it would take a lot of work to meet the oil lifting target of 660,000 bpd set in the 2023 state budget.
Hadi said Indonesia's oil production might only reach 609,000 bpd and that oil lifting would be even lower at 591,000 bpd.
