The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) reported that state revenues from the upstream oil and gas industry had reached USD 9.7 billion or equivalent to IDR 145.15 trillion, at an exchange rate of IDR 14,964, in semester I/2022. The report was submitted by the Head of SKK Migas Dwi Soetjipto at the opening of the 4th CEO Forum activity in 2022 which was held at Wisma Mulia Jakarta, Monday (11/7/2022). "Although production and lifting are still experiencing challenges, the upstream oil and gas industry in the first semester of 2022 has achieved several positive achievements, mainly state revenues which have reached USD 9.7 billion," said Dwi as quoted from a press release, Monday (11/7/2022). In addition, SKK Migas also reported the achievement of the reserve replacement ratio (RRR) which was already at 77 percent, as well as cost recovery which was successfully maintained at a low level of USD 3.2 billion or equivalent to IDR 47.88 trillion. On the other hand, Dwi hopes that the momentum of oil and gas prices which are still perched high until the middle of this year can be utilized optimally by Cooperation Contract Contractors (KKKS) to improve their lifting performance. As is known, world oil prices have been in the position of USD 100 per barrel for a long time and the average price until 2023 is estimated to be above USD 80 per barrel. This trend was also followed by global gas prices which experienced a significant increase to above USD25 per MMBTU. Meanwhile, the LNG spot price is currently in the range of USD 43 per MMBTU or equivalent to USD 240 per barrel of oil equivalent.
"The high world oil and gas prices are a golden opportunity for KKKS to increase production and national oil and gas lifting which is currently still far from the target of the 2022 APBN and the Long Term Plan (LTP) of the Upstream Oil and Gas Industry, so a recovery plan program is needed," he said.
In his briefing remarks as well as opening the second CEO Forum event in 2022, Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif conveyed the challenges of the upstream oil and gas industry which is relatively large due to the Covid-19 pandemic and the energy transition era ahead. Arifin appreciates the contribution of the upstream oil and gas industry to state revenues and hopes that oil and gas production and lifting can be increased. "In 2021, state revenues from the upstream oil and gas sector will reach USD 13.7 billion or 188% of the target of USD 7.8 billion. Until June 2022, the contribution of upstream oil and gas has reached USD 9.7 billion or 97% of the 2022 State Budget target of USD 7.8 billion,” said Arifin. Furthermore, Arifin asked KKKS to increase their oil and gas production and lifting in the midst of high world oil prices, with the Indonesian Crude Price (ICP) in June reaching USD 117 per barrel. “This forum is an opportunity for CEOs to be able to review the achievements of the first half of 2022 and maximize the rest of this year. This is a stepping stone for turnover towards 2030. Let's make it clear that production will increase and there will be no decline," he said.
