SKK Migas to meet PSCs to help arrest production decline

Senior officials of upstream authority SKK Migas, will visit the operations of oil and gas production sharing contractors (PSCs) in the country as part of efforts to help meet the target of zero decline in oil production.

?Next week, the entire leadership of SKK Migas will simultaneously meet face to face with the PSCs and listen to the obstacles they?re facing. We hope that the meeting will produce solutions for the smooth operation of oil and gas upstream (activities),? SKK Migas Director of Operation, Muliawan said Sunday.

The country?s oil and gas production has been on a declining trend during the past several years due to various reasons.

As of the first week of March 2013, realized average oil and condensate production reached about 827.2 bpd, while gas production 8,196 mmscfd. But in the second week until mid March, production started to slightly increase above 830 bpd. ?The meeting will seek ways so that this improving performance could be maintained or even further improved and the target of zero decline can be achieved,? Muliawan said.

According to data collected by SKK Migas, there are a number of obstacles hampering oil and gas production in the country, among others problems at production facilities, which caused potential production loss of 5,400 bpd; problems at production wells (rise in water cut and water blocking), which caused potential production loss of 1,600 bpd; and external factors, causing potential production loss of 700 bpd.

?During the meeting, we?ll discuss these problems deeper so as to try to find solutions together with the PSCs,? Muliawan said, adding that the SKK Migas will also talk with PSCs which are still in the exploration stage.

Editing by Reiner Simanjuntak