Jakarta ( WNAM MONITORING): The upstream oil and gas sector is key to accelerating the achievement of Indonesia’s energy self-sufficiency target, according to Energy and Mineral Resources Minister Bahlil Lahadalia.
He noted that energy self-sufficiency requires a sustained and optimal increase in oil and gas production.
“One of the steps that can be taken is reactivating idle wells,” he said in a statement issued on Sunday.
He assessed that the potential of those wells is quite significant for boosting national oil and gas production.
Indonesia has 44,985 oil and gas wells, including 16,990 idle wells.
Of the 16,990 idle wells, 4,993 have no hydrocarbon potential, 4,495 have hydrocarbon potential, and the remaining wells are still under study.
Lahadalia stated that reactivating the idle wells could restore Indonesia’s oil production to above 1.5 million barrels per day, as the country once achieved in 1997.
This is expected to help bridge the gap between domestic oil and gas demand and production.
“The situation in 1997 is the opposite of the current condition. Back then, we exported 1 million barrels per day; now, we import 1 million barrels per day,” he said.
The average oil consumption in Indonesia is 1.6 million barrels per day.
Increasing oil and gas production is one of the strategic measures being taken by the Ministry of Energy and Mineral Resources to achieve energy self-sufficiency.
