DIGIVESTASI - The Special Committee for Upstream Oil and Gas Activities (SKK Migas) is optimistic about this year's upstream oil and gas investment target of $17.7 billion or around Rp 286.7 trillion (exchange rate: 16,200 per dollar). This goal is achieved as the Middle East conflict between Iran and Israel escalates and the price of primary goods, including oil, soars. Hudi D. Suryodipuro, Head of Program and Communication at SKK Migas, said that Indonesia's upstream oil and gas investment target is expected to be achieved due to increased activity in the country's upstream oil and gas sector.

Starting from exploration and development of drilling operations, well overhaul (rework), to wellbore services (wellbore maintenance). 

"God willing, drilling, rehabilitation, and well maintenance activities will increase. "The investment there is large," Foudi said when met in Jakarta on Tuesday (April 23, 2024). 

SKK Migas itself is targeting exploration investment of $1.8 billion by 2024, Hudi said. This figure is up from the exploration investment that was only realized in 2023 of $900 million. 

"In terms of drilling activities, there has been an increase in well maintenance activities of 932 wells, rehabilitation of 905 wells, and 3,500 wells. "Therefore, we are optimistic about these activities, unless there are further delays," he said. 

As of 09:47 GMT on Tuesday (April 23, 2024), benchmark Brent crude oil prices rose 0.3% to $87.26 per barrel, according to Refinitiv data. Meanwhile, West Texas Intermediate (WTI) crude oil prices fell 0.77% to $87.26 per barrel.  

Previously, SKK Migas said that state revenues from the upstream oil and gas sector reached $14.59 billion or around Rp227 trillion (exchange rate of Rp15,558/USD) in 2023. 

SKK Migas representative Dwi Soeccipt explained that with this implementation, 92% of the 2023 target of $15.88 billion has been achieved. Government revenue in 2022 was recorded at $17.4 billion.  

"State revenue can be explained further. It amounted to US$14.59 billion. The question is the selling price," Dowi said at a press conference on Friday, December 1, 2024. 

Meanwhile, the realization of upstream oil and gas investment was only $13.7 billion in December 2023. This success is still far from the investment target of $15.56 billion set for 2023. 

Furthermore, SKK Migas also emphasized that the target of achieving oil and gas production that is ready for sale or commissioning in 2023 has not been achieved. For example, oil production is still at 605,000 barrels per day (bpd), only 92% of the target of 660,000 bpd. Meanwhile, gas production reached 5,378 billion cubic feet per day (MMSCFD), reaching 87% of the target of 6,160 MMSCFD.

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