Oil, gas chief says EOR program not a top priority right now
Tuesday, August 15 2017 - 01:04 AM WIB
The new Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Ego Syahrial said that pushing for the application of enhanced oil recovery (EOR) technology in aging oil and gas fields is not a top priority of the ministry right now considering the lingering weak oil price environment.
Kontan quoted Ego as saying Tuesday that while the application of EOR technology could increase oil production in the country, there are other better ways to boost production such as drilling of more wells and workover program, of which would be the ministry?s top priorities.
He added that EOR technology is quite costly, thus discouraging oil and gas contractors from applying it amid the weak oil price.
?This doesn?t mean EOR will not be implemented, there?s impact (on output. But if we have to make priorities, (first would be) adding absorption points, workover, and then EOR,? Ego told the paper.
Ego?s predecessor IGN Wiratmaja Puja has previously prepared a new ministerial regulation aimed at pushing oil and gas contractors to apply EOR technology in a bid to help increase the country?s oil and gas production. He projected that without EOR technology, the country?s oil output could drop to as low as 200,000 bpd by 2032, while with EOR output could be maintained at around 600,000 bpd, compared to current level of around 800,000 bpd.
Ego said that his office will continue to complete the draft of the new ministerial regulation on EOR so that when oil price has recovered meaningfully, and contractors are ready, the regulation will be ready.(*)