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Ministry plans to make use of unlicensed oil wells
The Energy and Mineral Resources Ministry plans to formulate a regulation for utilizing unlicensed oil wells to ramp up oil and gas lifting in the country.
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Water world: The Pertamina Hulu Energi (PHE) Offshore North West Java (ONWJ) oil and gas rig is pictured on April 2, 2023, in the waters off Indramayu, West Java. (Antara/Aditya Pradana Putra)
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he Energy and Mineral Resources Ministry plans to formulate a regulation for utilizing unlicensed oil wells to ramp up oil and gas lifting in the country.
During a meeting on Monday, House of Representative Commission XII, which oversees energy, mineral resources, the environment and investment, highlighted Indonesia’s target to produce 1.61 million barrels of oil equivalent per day (boepd) this year, with oil lifting rates of 605,000 barrels of oil per day (bopd) and 1.01 million boepd of gas lifting.
The country has seen declining oil and gas lifting rates since 2015.
“This is very challenging to achieve; one of the factors is that many of the community oil wells are operated without permits, so we have to call these illegal,” House Commission XII chairman Bambang Patijaya said.
The energy ministry's minerals and coal director general, Tri Winarno, said during the meeting that the ministry, to make use of the unlicensed oil wells, would prepare a regulation that would include aspects of cooperation in the working areas, governance, social security and investment protection.
Read also: Prabowo’s plan to boost oil and gas production faces major hurdles
The regulation would outline three forms of cooperation, Tri explained, with the first being cooperation on operations and technology with private oil and gas contractors (KKKS) and their partners, covering areas such as idle wells, productive wells, idle fields and productive fields.
