Latest News

Indonesia anticipates oil and gas investments to increase 29% to $17 billion in 2024

Indonesia expects investments in its oil and gas sector to increase 29% in 2024, the chairman of regulator SKK Migas informed , as it races to ramp up drilling and expedition following the current exits of worldwide giants Shell and Chevron.

An instant push in oil and gas investments is essential for the resource-rich southeast Asian country, which is looking to reverse a drawn-out output decrease in the middle of increasing funding obstacles for nonrenewable fuel source jobs.

Of the planned financial investments this year, 40% will originate from foreign business including Eni, Exxon Mobil and BP, Dwi Soetjipto, chairman of oil and gas regulator SKK Migas told on the sidelines of the Future Energy Asia conference late on Wednesday.

The financial investments will likewise be used to enhance expedition and drilling, Soetjipto stated. The anticipated growth in 2024 oil and gas investments, which will take them to $17 billion, is more than double the 13% growth witnessed in 2023.

We will increase drilling from last year, when we drilled 790 wells. This year, we are preparing about 930 wells, he stated, including that expedition spending will be increased to $1.4. billion from $0.9 billion in 2015.

The costs on exploration will consist of staggered. investments into tasks that will begin production later this. decade, he stated.

Soetjipto stated decarbonisation requirements for fossil fuel. jobs were a significant challenge, as the majority of the investment. funding was coming from foreign banks and there was no immediate. pathway for consistent rois in carbon capture.

The Indonesian federal government is keen to reverse the pattern and. targets a boost in lifting to one million barrels of oil and. 12 billion basic cubic feet per day of gas by 2030.

The requirements for financing and likewise from the. international companies is that they need to fulfil the green. targets. It indicates that their capex can increase with no. ( monetary) benefit from a carbon capture in the future, he. stated.

LOWER OIL, GAS LIFTING

Soetjipto anticipated somewhat lower yearly oil lifting volumes. of about 600,000 barrels per day (bpd) in 2024, compared with. 605,000 bpd last year. Still, that was higher than the earlier. SKK Migas forecast of 596,000 bpd.

Nevertheless, he anticipates 2024 gas lifting to be almost 8%. greater at about 5,700 million basic cubic feet per day. ( mmscfd), above the 5,300 mmscfd seen in 2023 and an earlier. 2024 forecast of 5,544 mmscfd based upon contractors' work plans.

The development of brand-new gas jobs in Indonesia has faced. hold-ups due to shareholder changes in projects, the COVID-19. pandemic and changes to embrace carbon capture technology.

The enhanced gas output projection was because of new. jobs that had begun production recently, he stated, adding. that a last investment choice in the postponed Geng North field. is anticipated in the middle of this year.

(source: Reuters)