Spend more on exploration: SKK Migas

By Nellawati

Upstream authority SKK Migas is urging PSC Holders to increase budget for exploration activities in order to significantly bolster new oil and gas reserve findings.

?Over the past few years, budget for exploration has accounted only about 7 percent of total expenditures, even lower than the budget for administrative purposes,? said Akhmad Syakhroza, Deputy for Finance Control at SKK Migas, when opening a coordinating meeting on crude oil and gas management lifting entitlement in Surabaya on Thursday.

Akhmad said in a statement that oil and gas reserves have to increase soon to ensure energy security and upstream business sustainability in the country.

Under this year?s budget plan, exploration drilling will be conducted on a total of 258 wells, development drilling on 1,178 wells, in addition to workover on a total of 1,094 production wells. Also, 2D seismic survey will cover 18.752 km2, while 3D 22,298 km2.

?Last year, contribution of oil and gas production from drillings on development wells, workovers and well services reached 10 percent of the national oil and gas production,? he added.

Editing by Dadan Wijaksana