The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) is set to undertake a more massive and aggressive exploration investment in 2024. As per the Work Program and Budget (WP&B), SKK Migas and Contractors Cooperation Contract (KKKS) have agreed on an exploration investment target of USD 1.8 billion for 2024, marking a 200% increase compared to the 2023 exploration investment realization of USD 0.9 billion. Benny Lubiantara, Deputy for Exploration, Development, and Management of SKK Migas, revealed a shift in exploration targets since 2023, with a focus on larger prospects ranging from 100 to 500 million barrels of oil equivalent (MMBOE). In 2023, SKK Migas achieved a significant milestone with the discovery of 1,711.77 MMBOE, the largest resource discovery in 23 years. Looking ahead to 2024, the aim is to explore prospects exceeding 500 MMBOE, leading to drilling in new areas and deep-sea locations. The targeted exploration investment of USD 1.8 billion for 2024 is intended for drilling 50 exploration wells, signifying a 31% increase compared to the 2023 realization of 38 wells. The drilling performance has consistently improved over the last four years, reaching its peak in 2023 with 38 exploration wells, the highest since 2017. SKK Migas and KKKS plan to escalate exploration drilling programs further in 2024.
The focus on deep-sea exploration aligns with the potential of Indonesia's oil and gas resources, emphasizing SKK Migas's commitment to driving exploration investments in deep-sea areas. In 2023, the efforts resulted in two giant discoveries, namely Geng North in East Kalimantan and Layaran-1 in the South Andaman Sea off the coast of North Sumatra. Benny highlighted the need for support from various stakeholders to facilitate successful deep-sea exploration programs and called for fiscal support and incentives to encourage investors in exploration activities. Additionally, Benny mentioned that the total resource discovery in 2023 reached approximately 1,711.77 MMBOE, marking the largest discovery in the last 23 years. The success ratio for exploration drilling in 2023 reached 54%, surpassing the global average. Benny acknowledged the journey ahead to realize the exploration investment target of USD 1.8 billion. On another note, SKK Migas continues to encourage prompt Plan of Development (POD) activities for each discovery, aiming to replace produced reserves. Since 2018, SKK Migas has maintained a Reserve Replacement Ratio (RRR) above 100%, contributing to the extension of the lifespan of oil and gas reserves. In 2023, SKK Migas achieved an RRR of 124% with an additional reserve of 705.91 MMBOE, coupled with a planned investment of USD 12.9 billion.
