JAKARTA, July 1 — Indonesia has issued a new regulation to attract investment from oil drilling technology providers in an effort to boost production from existing wells, officials said today.
Deputy Energy Minister Yuliot Tanjung told the press that the policy is primarily aimed at reactivating idle wells, part of efforts to increase oil output to one million barrels per day (bpd) in 2029-2030, from the current level of less than 600,000 bpd.
Once a net exporter of oil and gas, Indonesia's production has been steadily declining in the past decade due to ageing wells and a lack of new investment.
President Prabowo Subianto aims to achieve energy self-sufficiency under his leadership. Previously, Energy Minister Bahlil Lahadalia said that reactivating idle wells could potentially increase oil production by around 200,000 bpd.
Under the new policy, oil and gas block operators will be allowed to partner with technology providers to increase output from old or idle wells or fields, which operators often focus less on in favour of newer, more economical wells.
"Many of these operators need partnership from vendors that have the latest technology," Yuliot said.
The government has identified around 2,500 wells and more than 100 fields or structures that operators can partner with, such as vendors.
He added that to increase production in the long term, the government is preparing to offer 74 new oil and gas blocks to companies in the coming year.
— Reuters
