TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Rate of Indonesia oil production decline has slightly improved: SKK Migas
The rate of natural decline in Indonesian oil wells hovered around 1.2 percent in 2023, much lower than the between 6 and 7 percent it had been in past years.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
The Oyong oil and gas rig in the Sampang Block, located in the Madura Strait, off the coast of East Java. (SKK Migas/SKK Migas)
T
he rate of natural decline in Indonesia’s oil production slowed in 2023 compared with previous years, the Upstream Oil and Gas Regulatory Task Force (SKK Migas) said on Tuesday.
SKK Migas deputy head Nanang Abdul Manaf said that last year the agency recorded the rate of natural decline in Indonesian oil wells as hovering around 1.2 percent, much lower than the between 6 and 7 percent it had been in past years.
Natural decline refers to declining oil production due to the age and degradation of active oil wells, especially when there is little to no new exploration to replace the aging wells.
According to the United States Department of Commerce, Indonesia saw a much faster natural decline rate at 11 percent in 2018 and 2019.
“[SKK Migas] hopes that the start of operation in Medco’s Forel Bronang fields can contribute an additional 10,000 bopd [barrels of oil per day] to national oil production,” he said in Jakarta on Tuesday, CNBC Indonesia reported.
Medco E&P Natuna Ltd., a subsidiary of local energy conglomerate PT Medco Energi Internasional, operates the Forel-Bronang oil and gas project located in the South Natuna Block, Riau. The project is expected to go onstream in mid-2024.
Despite managing to slow the natural decline rate, Indonesia has been struggling to achieve its annual production target set in each year’s state budget.
