A Review For 2021 and 2022 Production Performance from Development Drilling Perspective

Abstract

SKK Migas has launched a vision for the national oil and gas industry to reach 1 million barrels of oil per day (BOPD) and 12,000 MMSCFD by 2030, which will be a sign of the revival of Indonesia's upstream oil and gas industry. One of the foundations that is important for achieving these targets is through massive, aggressive and efficient development drilling activities that will help to optimize existing production and also arresting national decline rate. This paper will describe the production achievements of development wells drilled during 2021 till August 2022. It is hoped that an overview of the effectiveness of development wells will be obtained as well as possible improvements to be made in the future.

2021 and 2022 had become important period for development drilling strategy to gain more attention and more activity in a few years ahead. On a national scale, in 2021 about 480 wells had been drilled and 444 onstream wells had been drilled. Meanwhile from Work Program and Budget (WP&B) 2022 results, it has been agreed and approved as many as 790 development wells and the potential for an additional 100 wells in one of the PSC Contractors on the island of Sumatra. The year 2022 is a new milestone in terms of the number of development wells drilled with nearly 900 number of wells to be drilled, which is the highest number of wells in the last 7 years. During 2021, the annual production contribution from development wells is 16,576 BOPD and 382  MMSCFD, where the drilling activity is able to withstand the National decline rate for oil from 10.4% per year (only monitoring existing wells and conducting well intervention) to 7% per year from 2020 to 2021. By volume, 6.05 million barrels of oil and 139 BCF of gas were produced. Until August 2022, the annual production contribution from development wells was 14,870 BOPD and 199 MMSCFD which equal to 3.61 million barrels of oil and 48 BCF of gas. The development drilling program for 2022 is ongoing and it is expected that more than 800 wells can be drilled by 2022.Looking at the results in 2021 and 2022 shows that the  contribution from the development well drilling program is able to help to withstand the National decline rate for oil.

The competence and successful drilling of development and production of wells certainly involves many parties. It is hoped that good cooperation will continue to achieve the realization of drilling in the future, both from the subsurface aspect, drilling operations, social aspects and licensing in order for drilling programs to be executed according to schedule and get optimal production. By all means, this is to achieve the national oil and gas industry target of 1 million BOPD and 12,000 MMSCFD by 2030.