Overview Last 5 (Five) Years of Drilling Exploration Activities in Indonesia

Abstract

Since the oil price drop to the lowest bid in last 20 years in Oil and Gas Industry. Most of Oil & Gas Company in Indonesia, holding up their exploration survey and drilling as major activities. Some companies re-overviewed the exploration budget and gain if they have to do those activities while the operating cost not reduced.
Statistics of exploration activities since 2013 shows, the declining of seismic survey (2D and 3D) and exploration drilling program. Many of them were dropped off and taken out from original proposal of Work Program and Budget (WP&B) to be carried over to the next year, assuming the oil price will bounce up back to the high level (USD 70-100/bbls). This circumstances would directly affect the oil and gas discovery efforts.
Lowest exploration activities were noticed in 2016 since oil priced dropped in mid 2017, the oil price increased slowly and, nowadays reach around USD 70/bbl for WTI and USD 78.6/bbl for Brent. This should be a good trigger for the company to execute their postponed exploration activities last 5 (five) years. Nowadays, some projects has been running in operation period, especially in remote area of Kalimantan and Papua. Cost efficiency is also being a reason why some companies enable to conduct the exploration program.
Exploration activities are urgently needed to gather the information about oil and gas reserves in potential area that has been studied by a scientist long time ago. Study, seismic and drilling are the activities which sequentially conducted in exploration period to know the oil and gas reserves in place. Those activities are important for Indonesia to keep the reserves of oil and
gas and finding new area to be developed to keep production forecast at the level.