1 Billion Barrels of Oil in the Sea Near Jakarta, But?

Bisnis | Ekonomi - Posted on 01 April 2024 Reading time 5 minutes

DIGIVESTASI - The Special Committee for Upstream Oil and Gas Activities (SKK Migas) recognizes the potential for significant oil resources in the Zulu field in the Offshore North West Java (ONWJ) field. In fact, this field is estimated to be able to hold up to 1 billion barrels of oil. President Director of SKK Migas Dwi Soechipto said that his party is now encouraging Pertamina to immediately develop the Zulu field. However, developing the Zulu sector presents its own challenges. 

 

Dui explained that the Zulu oil field has heavy oil characteristics and is difficult to produce. In addition, the field is located offshore.

 

"Heavy oil is usually produced onshore using steam. So if you add steam it becomes liquid. Well, the problem is that it is very difficult to produce steam at sea or offshore," Dwi explained when met at the Ministry of Energy and Mineral Resources building in Jakarta on Monday (April 1, 2024). 

 

Therefore, his party in collaboration with Pertamina will investigate how oil with heavy oil properties can be produced in the Zulu field. Even if the production cost is more expensive, he continued. "We are considering whether we should use chemicals, etc, but of course the cost will be high. But other than that, our friends around the world are researching technologies that can be applied," he added.

 

Previously, Director General of Oil and Gas Tutuka Aliazi said the government has identified several oilfield areas that have great potential to be developed immediately. One of them is located in the ONWJ Working Area (WK) operated by PT Pertamina Hulu Energi (PHE) ONWJ. "There are areas that we want to explore to develop further.

 

In the ocean that ONWJ manages and is extensive. It's called the Zulu field. But it's a heavy oil field. We propose exploitation to Pertamina." . "Zulu is huge. It could amount to 800 million barrels to 1 billion barrels of resources. "This can be managed," Tutka said in a meeting held at the Ministry of Energy and Mineral Resources Building on Thursday (March 14, 2024). 

 

First, Tutka admitted that the target of 1 million barrels per day, which was originally set in 2030, could change to 2033. In addition, the natural decline in production continues. 

 

He said that a number of efforts in the upstream oil and gas sector are currently limited in their ability to stem the decline in production. Therefore, without new discoveries, it will be very difficult to increase oil production. 

 

"There is a possibility [of being postponed until 2033]. Maybe the plan is still in SKK Migas, but we think it could be," Tutka said. 

 

Nevertheless, the party continues to target a production target of 1 million barrels per day by 2030. One of them is the exploration of unconventional oil and gas reserves (MNK) and increasing oil production through Enhanced Oil Recovery (EOR) techniques. "If successful, I think both will contribute significantly to oil production. This is from the perspective of the Director of Oil and Gas," he said.
 


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Source: cnbcindonesia.com

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