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Jakarta Post

Indonesia needs $6 billion to boost oil production to 1 million bpd

  • Norman Harsono

    The Jakarta Post

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Jakarta   /   Wed, October 16, 2019   /  03:08 pm
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Workers carry out routine activities at PT Saka Energi Indonesia’s oil well in the Pangkah oil field in Gresik, East Java. According to the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas, oil and exploration investments consistently declined from $3.04 billion in 2013 to $567.5 million in 2017 before improving to $786.2 million last year.(Antara/Moch Asim)

Indonesia needs to raise at least US$6 billion in investment over the next 10 years to boost domestic oil production to 1 million barrels per day (bpd) by 2030 as targeted by the government, a business association has estimated. “Hundreds of exploration wells need to be drilled,” John Karamoy, the chairman of the Oil and Gas Companies Association (Asper Miga) at an industry discussion in Jakarta on Oct. 10. He said the estimate, which averages out at $600 million per year, was based on the assumption that Indonesia, as a mature oil and gas producing country, could find one oil discovery for every five drills. “In other countries, it’s eight drills for one discovery. We’re a mature [oil producing] country, so the geography is quite well known,” he told The Jakarta Post. Indonesia’s oil industry hit its peak during between the...