Indonesia makes a significant return to the global upstream oil and gas industry map with the discovery of Geng North and Layaran, both classified as world-class findings in 2023. The Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), Dwi Soetjipto, expresses the commitment to leverage this momentum for enhancing oil and gas exploration activities this year. Through collaboration with contractors, SKK Migas aims to double the exploration investment to USD 1.8 billion, projecting an overall oil and gas upstream investment target of USD 17.7 billion in 2024, a 29% increase from the 2023 realization of USD 13.7 billion. These two colossal exploration discoveries, Geng North and Layaran, represent the largest findings since the Abadi Masela Field discovery in 2000, earning them a spot among the top 5 giant discoveries globally in 2023 according to WoodMackenzie, Rystad Energy, and S&P Global. Dwi emphasizes the need to maximize this momentum by exploring additional opportunities and transforming them into production, bringing benefits to both investors and the Indonesian economy. Additionally, the upstream oil and gas sector currently oversees five ongoing national strategic projects with a total investment value of USD 45.09 billion. Looking ahead to 2029, 95 gas projects are anticipated with a total capital expenditure of USD 3.28 billion. For 2024, the target is to have 15 operational projects, contributing to a production capacity increase of 41,922 barrels of oil per day (BOPD) and 324 million standard cubic feet per day (MMSCFD) of gas.
Furthermore, in 2023, well development drilling achieved its highest figure in the last eight years, with 799 wells drilled. SKK Migas sets an ambitious target of surpassing 1,000 wells by 2025. Over the past six years, the Reserves Replacement Ratio (RRR) has consistently exceeded 100%, reaching 123.5% in 2023. The 2024 RRR target is an even higher 166%, showcasing Indonesia's robust achievements in maintaining and expanding its oil and gas reserves.
