Publications

SKK Migas has revisited its strategic plan and the established Indonesia Oil & Gas Strategic Plan (IOG 4.0) in 2020. The strategic plan drafting has been carried out by considering the following factors: 1) projection of global energy needs: the need for petroleum will reach its highest in 2030, and natural gas will grow significantly along with Asia’s economic growth; 2) net zero emissions by 2050 which has encouraged international oil companies to improve investment in renewables and emission reduction in oil and gas operations; 3) oil price assumptions; 4) Indonesia's energy demand projection (oil consumption up to 139% and gas consumption up to 298% by 2050); and 5) Indonesia's growing oil balance deficit: it needs to upgrade investment term & condition, reduce current account deficit, enhance energy security, and implement the multiplier effects. In developing the strategic plan, SKK Migas has studied the best practices of upstream oil and gas industry regulators and identified the main lessons in achieving its ambitions. SKK Migas has identified six main trends as follows: 1) massive exploration potential; 2) production and development optimization; 3) focus on cost efficiency; 4) attractive fiscal scheme and solid regulatory regime; 5) implementation of leading technology, data, and analytics; and 6) organizational alignment with PSC. SKK Migas, through IOG 4.0 Strategic Plan, has set up an ambition to achieve 1) the best level of production; 2) national capabilities; and 3) a sustainable environment. Those ambitions have been cascaded into a specific target to achieve 1) producing 1 MBOPD oil and 12 BSCFD gas by 2030; 2) increasing the multiplier effects; and 3) ensuring environmental sustainability. The IOG 4.0 Strategic Plan consists of 10 strategic pillars & enablers: 1) maintaining and improving existing asset value; 2) transforming conversion of discovered resources; 3) increasing recovery factor through EOR; 4) unlocking exploration potential (a road to giant discovery); 5) enacting national supplier competitiveness enhancement program; 6) decommissioning & low carbon initiative; 7) digitalization; 8) technology adoption; 9) investment & commercialization model; and 10) SKK Migas roles & capabilities. SKK Migas has also established a vision to 1) focus on optimization activity and cost; 2) focus on the long-term; 3) act as a driving force, do engagements, and provide added value; and 4) become a center of excellence in the upstream oil and gas industry.