Ministry to require oil, gas contractors to apply EOR technology

The Ministry of Energy and Mineral Resources is drafting a new regulation that would require oil and gas contractors in the country to apply so-called enhanced oil recovery (EOR) technology in their operations in a bid to help increase the amount of crude oil that can be extracted from oil fields as part of strategy to help secure the country?s future oil production, Kontan reported on Friday.

The paper quoted Director General of Oil and Gas at the ministry, IGN Wiratmaja Puja as saying that without the EOR technology the country?s oil production could drop to around 300,000 bpd in 2024-2025 and further decline to as low as 200,000 bpd in 2032, from around 800,000 bpd currently.

He said that by using chemical injection EOR technology, the oil production is projected to reach around 600,000 bpd in 2032.

Wiratmaja said the government wants oil and gas contractors to quickly apply the EOR technology as the result can only be seen after eight years.

He said that the government will provide incentives for the contractors to apply the EOR technology. He said that the planned incentives are still being discussed. (*)