Drilling of 427 Development Wells Completed, SKK Migas Highlights Rig Availability

drilling 427 The Special Task Force for the Implementation of Oil and Gas Business Activities (SKK Migas) recorded that it had completed drilling 427 development wells until July 2023. This figure is higher than the realization in the same period in 2022 of 419 wells.
SKK Migas Exploitation Deputy Wahju Wibowo said that there had been significant developments related to the progress of the development well drilling. “In the first 3 months, only 167 wells were reache, but within 4 months there could be an increase of 260 wells, so that in July 2023 the total will be 427 wells,” said Wahju in his statement in Jakarta, Friday, September 1 2023.
Wahju estimates that by the end of 2023, the number of development wells drilled is projected to be 919 wells from the target of 991 wells. Some of the things that are a challenge in drilling development wells are the availability of rigs that suit the needs and currently the competition to get the drilling tools is very tight, which has an impact on increasing prices
oil and gas operating costs efficient so that they are still within the established cost corridor. in the cost recovery set by the government,” said Wahju.

SKK Migas appreciates the synergy and collaboration between PSC Contractors by entering into an umbrella contract for the same type of rig

so that many PSC Contractors can use it with only one umbrella contract.
“This also provides significant cost efficiency and of course certainty of rig availability,” he said.

Furthermore, Wahju said that currently SKK Migas and KKKS are optimizing drilling work and the process of mobilizing and demobilizing rigs from one location to another in the same working area as well as to other KKKS working areas that are include in the umbrella contract for the use of the rig.

“In order to optimize the rig. Apart from optimizing the use of the rig to suit the existing schedule. We are also making efforts so that the mobilization and demobilization process of the rig can be further optimize,” said Wahju again.

This massive development well drilling work must also maintain health, safety & environment (HSE) aspects.

Regarding this matter, Wahju is grateful that from the second quarter of 2023 until now all activities have been able to run smoothly without any problems. The impact is that existing rigs can be optimize, so that the completion of development well drilling from April 2023 until now has increase significantly.

2023 can be closer to the target number of 991 wells so that the entry level for oil and gas production in early 2024 is at an optimal level,” “Wahju said.
Apart from drilling development wells, SKK Migas also revealed other main exploitation activities, namely workover and well service work. For workovers, the achievement until July 2023 is 472 wells or has reached 57 percent of the 2023 target of 834 wells.

When compared with the same period in 2022 of 382 wells, SKK Migas recorded a year on year increase of 124 percent. For well service activities, of the target of 33,182 activities, 19,386 activities have been realize or 58 percent achieve or year on year reaching 111 percent.

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