Indonesia to double development drilling in 2021 amid recovering crude prices
Norman Harsono The Jakarta Post Tue, February 9, 2021
The Oyong oil and gas rig in the Sampang Block, located in the Madura Strait off the coast of East Java, is seen in this 2020 handout photograph.(SKK Migas/SKK Migas)
JAKARTA – The Indonesian government estimates that the national oil and gas industry will drill 616 new wells this year as global crude oil prices begin recovering.
The target is the highest since 2014 and a 150 percent increase from last year’s drilling activities.
Brent Crude, the global price benchmark, hit US$56 per barrel on Thursday, higher than the 2020 average price of $41.69 per barrel, according to the US Energy Information Administration.
The head of the Upstream Oil and Gas Regulatory Task Force (SKK Migas), Dwi Soetjipto, said on Wednesday that the new development wells aimed to stall the declining output from existing oil and gas fields in the country.
SOURCE: The Jakarta Post Tue, February 9, 2021