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.

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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.

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