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Indonesian Highlights and Insights in News
Indonesian Highlights and Insights in News
Business_Economy
ESDM Minister Confidence To Secure Oil Lifting Target Of 605,000 Barrels In 2025
Thursday, 28 Nov 2024
The Minister of Energy and Mineral Resources, Bahlil Lahadalia, expressed confidence that the target for oil lifting set at 605,000 barrels per day (bopd) for 2025 will be achieved. He even projected that the oil lifting for the upcoming year could exceed the target outlined in the 2025 State Budget (APBN). "The APBN 2025 sets our lifting target at 605,000 barrels per day. It will certainly be more than that," Bahlil stated at his residence in South Jakarta, as reported on Thursday, November 28, 2024.
He elaborated that this lifting target can be realized through the implementation of three strategies. First, there must be technological interventions in the oil wells, despite the high costs involved. However, Bahlil acknowledged that such technological interventions primarily serve to prevent production declines.
Secondly, he urged that wells which have completed exploration should promptly proceed with the Field Development Planning (PoD). Thirdly, he emphasized the need for exploration activities to enhance oil lifting. While he remains optimistic about achieving the 2025 target, Bahlil admitted that he cannot guarantee that the 2024 lifting target of 635,000 bopd will be met. "For 2024, I cannot promise that we will meet the APBN target. That would be fair, right? Because this is not about constructing buildings; as you know, oil production takes at least a year," Bahlil remarked.
Consequently, he indicated that the government is currently inviting upstream oil and gas investments into the country. Bahlil also mentioned that he has proposed several schemes to make upstream oil and gas investments more appealing to investors. One of the schemes he offered is a profit-sharing or gross split model. "Thus, there is no longer any excuse for anyone to claim that we are not competitive. We provide incentives. I am offering incentives, as long as they genuinely contribute to making the feasibility study valuable in a win-win situation for both investors and the government," Bahlil concluded. (putri@insightinnews.com)
