Government Discovers 33 Billion Barrels of Oil Potential in Eastern Indonesia
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Story from Happy Fajrian • Yesterday 15:53 p.m.
The government found jumbo oil potential of up to 33 billion barrels in two oil and gas basins in Eastern Indonesia, namely the Seram basin in Maluku, and the Warim basin, Papua.
The Seram Basin is said to have oil potential of 7,596 million barrels (MMBO) and gas of 13.69 trillion cubic feet (TCF). Meanwhile, the Warim Basin holds a potential of 25,968 MMBO of oil and 47.37 TCF of natural gas.
Head of SKK Migas, Dwi Soetjipto, said that the exploration of two basins in eastern Indonesia is part of a long-term strategy to increase national oil and gas production.
"If the two basins can be successful, they can increase long-term oil reserves, of course, including production," said Dwi when met after the Hearing Meeting (RDP) with Commission VII dpr on Wednesday (2/2).
The Warim Basin, which is located in the border area with Papua New Guinea, is claimed to have great potential for oil and gas resources or giant discovery. The status of the working area is now an open area after being released by an oil and gas company from the United States, ConocoPhillips in 2015.
However, there were a number of obstacles encountered by the government in exploration efforts in the two basins. One of them is the limited data availability of the Seram Basin. Meanwhile, the Warim basin overlaps with the Lorentz national park.
To overcome this, the government will follow up through a deep-sea offshore 3D seismic survey and preparation to become a work platform "If in the Seram basin the obstacles are only that, there are no environmental issues like in Warim," said Dwi.
The Ministry of Energy and Mineral Resources is currently in communication with the Ministry of Environment and Forestry (KLHK) to continue the permit for the development of the Warim basin, which is located in the conservation forest area and Lorentz national park. "Of course, discussions with the Ministry of Environment and Forestry and its affairs with the DPR," said Dwi.
Furthermore, said Dwi, the government has also begun to seriously encourage unconventional oil and gas drilling (MNK) to increase national oil and gas production. SKK Migas will drill the Kelok well and Gulamo Well in the Rokan Block of Riau Province in the second quarter and third quarter of 2023.
The challenges of developing MNK are the lack of availability of reservoir characteristics data and unfavorable fiscal conditions.
In addition, there are technological challenges and production costs are influenced by the character of unconventional oil and gas which has low permeability and high viscosity.
In 2021, data from the Ministry of Energy and Mineral Resources shows that Indonesia's oil reserves only remain at 3.95 billion barrels. These reserves consist of 2.25 billion proven reserves and 1.7 billion potential reserves.
The amount of such reserves is down considerably from 7.73 billion barrels in 2011. At that time, proven reserves were recorded at 4.04 billion barrels and potential reserves of 3.69 billion barrels.
These oil reserves are expected to last only about 8 years. This also makes oil import even greater if Indonesia continues to rely on fossil oil.