Minister Reveals Three Strategies to Reduce Oil and Gas Imports

Jakarta, VIVA – Indonesian minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, stated that the government is preparing three strategies to reduce the portion of national oil and gas (O&G) import expenditures, given Indonesia's significant mineral resource potential.

Minister Lahadalia said that these strategies include optimizing oil production with technology, reactivating idle wells, and conducting O&G exploration, particularly in Eastern Indonesia.

"Indonesia's oil production is 221 million barrels per year. We import 297 million barrels, consisting of 129 million barrels in the form of crude oil and 168 million barrels in the form of fuel oil (BBM)," he explained in Jakarta on Tuesday (Aug 28).

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Menteri Energi dan Sumber Daya Mineral (ESDM) , Bahlil Lahadalia

Photo :

• VIVA.co.id/Anisa Aulia

For optimizing oil production with technology, the minister gave an example of Banyu Urip project in Surabaya, which is being carried out by ExxonMobil.

According to minister Lahadalia, the project could increase oil lifting from an initial 90-100 thousand Barrels of Oil per Day (BOPD) to 140-160 thousand BOPD.

Meanwhile, for the reactivation of idle wells, he highlighted that there are currently 44,985 O&G wells in Indonesia, 16,990 of which are categorized as idle wells.

"However, not all have the potential for reactivation due to various reasons, such as the absence of subsurface potential, unmet economic feasibility due to high reactivation costs and global crude oil prices at the time, as well as HSE (Health, Safety, and Environment) factors and other non-technical factors," he explained.

Furthermore, in terms of the strategy for O&G exploration in Eastern Indonesia, the focus is on areas such as Seram, Buton, the Aru-Arafura Sea, Warim, and Timor.

"Our current focus area is in the eastern regions. So, in the eastern regions now. Well, the status of the area at the moment shows several blocks with good potential. Such as in Seram, Buton, the Aru-Arafura Sea, Warim, and Timor," he cocluded.

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"However, not all have the potential for reactivation due to various reasons, such as the absence of subsurface potential, unmet economic feasibility due to high reactivation costs and global crude oil prices at the time, as well as HSE (Health, Safety, and Environment) factors and other non-technical factors," he explained.