RI to produce 1 million barrels of oil per day must be prepared to face risks

JAKARTA, KOMPAS.com – The Government through a Special Task Force for Upstream Oil and Gas Business Activities ( SKK Migas) targeting national oil production to reach 1 million barrels per day by 2030.

Head of SKK Migas Dwi Soetjipto assessed that the production of 1 million barrels is a target that needs to be achieved and supported by various parties, including cooperation contract contractors (KKKS).

“The step towards 1 million barrels requires a leap of work, so there will be risks and obstacles because what is being done is business not as usual, “he said in a webinar, Monday (2/11/2020).

Also read: Head of SKK Migas Says Enough Oil Proposal for 15 Years

According to the former President Director of PT Pertamina (Persero), SKK Migas and KKKS will play a crucial role in carrying out the assurance function consisting of internal audit, risk management, and compliance.

“Don’t just focus on management compliance to not just be safety netHowever, it must play an active role to become a bridge for the achievement of organizational goals by providing improvements in the good governance process, “he said.

As a supervisor and controller of upstream oil and gas activities, SKK Migas continues to improve the standards and effectiveness of supervision and auditing in this strategic sector.

Internal Supervisor of SKK Migas Taslim Yunus said SKK Migas has a tough task to ensure that state revenues can be maintained and realized both in terms of quantity and suitability of governance.

“Building the upstream oil and gas industry with good governance and having international standards is one of the keys to attracting investors to a sector that has high business risk,” he said.

Also read: SKK Migas Urges Pertamina’s Subsidiary to Increase Production

Furthermore, Taslim emphasized that good upstream oil and gas governance is one of the keys to convincing the business world, both national and foreign, of the competitiveness of Indonesia’s upstream oil and gas sector, thus achieving the vision of 1 million barrels per day of production.

“This will attract investors to invest in Indonesia,” said Taslim.

For information, the realization of national oil production in the third quarter of 2020 reached 710,000 barrels per day.

Even though it is equivalent to 100.4 percent of the work program and budget (WP&B) target, the realization is still lower than in the same period last year, which was 745,100 barrels per day.

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