Oil and Gas Exploration Increases, Upstream Investment Hits US$873.2 M

The Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) revealed that the realized investment of the upstream oil and gas industry as of January 2021 reached US$873.2 million or 7.05 percent of this year's target at US$12.38 billion. The task force’s acting head of the Program and Communication Division, Susana Kurniasih, confirmed that it was higher than that of January 2020 at US$767.5 million or 5.55 percent of last year's target.

The investment funds mostly go to the oil and gas exploration projects conducted by Pertamina EP, Pertamina Hulu Mahakam, Eni East Sepinggan, Pertamina Hulu of East Kalimantan, and Pertamina Hulu Energi Offshore Southeast Sumatra (PHE OSES). Meanwhile, the rest of the funds are for other development projects, especially the development well drilling programs carried out by Pertamina Hulu Mahakam, Pertamina Hulu Sanga-Sanga, Pertamina Hulu Energi Offshore North West Java (PHE ONWJ), Eni East Sepinggan, Pertamina EP, Petronas Carigali Ketapang II, ExxonMobile Cepu, and BP Tangguh.

SKK Migas has been coordinating with the oil and gas contractors (KKKS) to supervise and help out on the creation of this year’s work program and budgets (WP&B). "We see that contractors’ attempts to speed up the work programs implementation KKKS by completing necessary supporting documents at the end of last year have shown good results, so that the realized investment in January 2021 is higher in number and percentage," Susana explained.