Target, Challenges and Strategic Plans for Increasing Oil Production in Indonesia 2014


How is the performance of production or lifting national oil and gas in 2013?

What are the challenges (various problems or obstacles) that occurred during 2013?

How many national oil production target in 2014?

Who are the Top Five Producers of Oil in Indonesia as of FEB-2014?

What are the strategic actions plan (including project development and exploration) to achieve the target of 2014 oil and gas production is taken by SKK Migas, Pertamina EP, PHE-ONWJ and PHE-WMO?

Performance of production or lifting national oil and gas in 2013:

From the target State Budget Changes (Revised) in 2013 amounted to 840,000 barrels per day (BOPD), the realization of oil production per December 31, 2013 up to 825,000 BOPD met or 98.3 percent of the target.

The achievement of lifting gas realized 1.218 million BOEPD, or about 98.4 percent of the target set at 1,240,000 BOEPD.

Nearly 19,000 BOPD of oil production potential is lost due to various constraints that occurred during 2013, among others:

  • technical obstacles in the field (opportunity lost 1,000 BOPD),
  • delay in lifting activities with a total of 47 events, especially problems with the ship (1,400 BOPD),
  • delays in procurement of facilities and production equipment (2,500 BOPD),
  • licensing constraints on the ground (800 BOPD),
  • disorders theft and security as well as ‘illegal tapping’ incident which reached about 2,100 in 2013 to 1,100 BOPD lost opportunity,
  • constraint “subsurface” due to the natural decline in existing fields that would average 4.1 percent and 16-00 events that lead to “unplanned shutdown”,
  • there are four projects in upstream oil and gas are declining schedule “onstream” the Karang Block , Gundih Field, Offshore Tarakan, and Field NDD-13.

(Pelaksana Tugas Kepala SKK Migas, John Widjonarko said during a hearing with Commission VII of the House of Representatives in Jakarta, Monday, 2/17/14, as quoted from

Oil and gas reserves in Indonesia?

It is estimated oil and gas reserves Indonesia:

  • is still quite large, but its location has been increasingly difficult to explore because most are in the deep sea.
  • about 3.7 billion barrels, with potential reserves (to be proven by exploration) reached 43.7 billion barrels.

East Java Province is one area that has a large enough potential oil and gas reserves, such as

  • Cepu (Bojonegoro),
  • Block Sukowati (Tuban), and
  • Block WMO (Madura).(As said Vice President of Corporate Communication of PT Pertamina (Persero) Ali Mundakir – Antara /, March/2014)

Targets and SKK Migas Strategic Plans to Achieve Target of Oil and Gas Production in 2014

In Budget 2014, the government expects oil production could reach 870,000 BOPD and natural gas 7,175 million British thermal units per day (bbtud).

The amount is equivalent 2.11 million barrels of oil equivalent per day and targeted revenue from the sale of oil and gas as much as 30.6 billion U.S. dollars.

To achieve the production target in 2014, SKK Migas set up some strategic steps,

  • First treat various operations by reducing production and drilling operations failures in order to get additional production, as well as facilitate problem-solving projects.
  • Second, reducing unplanned production stoppages (unplanned shutdown) through a detailed evaluation of the planned maintenance of production facilities and improved control of production facilities.
  • Third, address the “decline rate” keen to ensure the drilling schedule timely development and optimization of the development process.
  • Fourth, overcoming land acquisition and permitting constraints.
  • Fifth, SKK Gas seeks to overcome the constraints of procurement business processes with updates in the procurement process and increase accountability and good governance.

Data of Petroleum Production in Indonesia – February 2014:

National Oil and Condensate Production (thousands of barrels per day) – Status by February 12, 2014:

  • Chevron Pacific Indonesia: 308.52
  • Pertamina: 113.15
  • Total E & P Indonesia: 66.05
  • PHE-ONWJ: 36.85
  • CNOOC SES Ltd..: 34.38
  • Other: 231.34(Source: Oil and Gas SKK / Bisnis Indonesia)

Pertamina EP Activities to Increase Oil and Gas Production in 2014

SKK Migas data as reported by Bisnis Indonesia , it is known that Pertamina EP oil production target as set in National Budget (APBN) 2014 to reach 128,889 barrels per day , and the target in the work program and budget ( WP & B ) 125,000 barrels per day .

Meanwhile , gas production target set in 2014 reached 818.45 MMSCFD state budget , and the target set WP & B 844.73 MMSCFD .

Currently Pertamina EP oil production was 119,000 barrels per day .

Currently the average natural decrease in the production of oil and gas fields around the Pertamina EP reached 20 % per year .

Pertamina EP, a subsidiary of PT Pertamina ( Persero ) in 2014 will continue to improve oil production targeted 128 889 barrels per day :

  • Optimize lifting and production facilities , such as pump replacement is considered no longer efficient .
  • drilling 87 development wells with an investment of U.S. $ 400 Million .
  • Drilling will be mostly done in Eastern Indonesia ( KTI ) because considering its potential is still there .
  • 14 exploration wells will be drilled with an investment of U.S. $ 15 million each wells
  • Meanwhile , the activities of the enhanced oil recovery ( EOR ) of the company is expected to reach 25,000 barrels per day . The target , throughout 2014 the company can produce 3,300 barrels of oil per day from the EOR .


PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ) unit or subsidiary of PT Pertamina (Persero) is the operator of block ONWJ.

PHE ONWJ recorded production of oil and gas sales in 2013 amounted to 38,300 barrels of oil per day (BOPD) and 181 million cubic feet per day (MMSCFD).

PHE-ONWJ successfully exceeded the target set in the revised SKK Migas Work Program and Budget (WP & B) in 2013 amounted to 38,000 BOPD and 175 MMSCFD.

The increase in production is a positive result obtained through various exploration and development activities are conducted PHE ONWJ.

This 2014, in line with government efforts to increase oil and gas lifting national, PHE ONWJ continue to make efforts to increase the production of oil and gas i.e.:

  • production optimization,
  • drilling exploration wells,
  • facilities maintenance and
  • new field development

In 2013 ago , PHE ONWJ has successfully completed projects namely LIMA Subsidence Remediation removal of bridge projects on the ground , which dropped LIMA seabed due to rock compaction in the soil .

In addition to facility maintenance , PHE ONWJ do some development to increase production in the coming years and add to the oil and gas reserves , such as :

  • Development of UL field . February 2014 , UL field ready to operate and is expected to increase the oil production of 2,200 BOPD and 9.5 MMSCFD .
  • Development of GG has been doing groundbreaking field development of gas processing facilities in Balongan , Indramayu which will be used to process and transport the gas from the field to the consumer as well as the GG has started the fabrication stage of making the bridge ARF .
  • drilling activity MTX – 1 exploration well has been completed and Yys and continued with the drilling of exploration wells DA – 1 is still in progress .
  • In 2014 , the PHE ONWJ also plan to conduct 3D Seismic activity in the waters of Karawang , Indramayu and Cirebon .

Pertamina Hulu Energi (PHE)-WMO

WMO block acquired by PHE-WMO from Kodeco Ltd.. in May 2011.
◦ Average production in 2012 approximately 11 471 BOPD
◦ production peak in 2013 the WMO block never reached approximately 26,226 BOPD in early August 2013,
◦ production in 2013 is on average reached 18 070 BOPD and 114.5 MMSCFD of natural gas.

Pertamina Hulu Energi West Madura Offshore (PHE WMO) in 2013 capable of producing oil and gas amounted to 18 086 barrels of oil per day (BOPD) and 114.5 million cubic feet per day (MMSCFD).

Pertamina Hulu Energi (PHE) as one of the contractors (PSCs) which manages the West Madura Offshore (WMO) got a target in 2014 of SKK Migas to increase oil production from an average of 18,070 BOPD in 2013, became for the year 23 076 BOPD and gas 112 MMSCFD.

PHE-WMO prepared several programs and strategies:
◦ optimize existing oil and gas exploration wells to achieve maximum production,
◦ application of EOR technology / IOR,
◦ continuously seeks to develop an integrated oil and gas field

In the plan of development (POD), a subsidiary of PT Pertamina (Persero) has received approval from SKK Migas to build six new well platforms on the integrated oil and gas fields in WMO Block, namely PHE-6/12, 7, 24, 29, 44, and 48, which are expected to be operational in 2015.

Video: “Pertamina PHE WMO Company Profile”

References / read more:


One response to “Target, Challenges and Strategic Plans for Increasing Oil Production in Indonesia 2014

  1. Write more, thats all I have to say. Literally,
    it seems as though you relied on the video to make your point.

    You obviously know what youre talking about, why throw away your intelligence on just posting videos to your blog when you could be giving us something informative to

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