Oil and gas companies want the government to provide incentives for oil-recovery activities, which are costly but have an important role in boosting the country’s declining oil production. Oil recovery is an alternative method for increasing oil production aside from exploration activities, it involves injecting chemicals into oil wells to push the remaining oil up from the reservoirs. Pertamina EP (PEP), a subsidiary of state-owned energy holding company Pertamina has been implementing oil-recovery techniques since 2016, such as water-flooding and enhanced oil recovery (EOR). Oil-recovery activities comprise three phases: primary, secondary and tertiary—the last one is what is known as EOR. Water-flooding is the secondary phase, which employs water and gas injection, displacing the oil and driving it to the surface. The EOR method involves flooding the wells w...

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