JAKARTA, RAKYAT NEWS – The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) has issued a formal warning letter, known as SP-1, to Inpex Masela Ltd, urging the company to accelerate the production of natural gas from the Masela Block. The government is pushing for immediate action from the Japanese investor, which holds the rights to the Masela Block, a key resource in Indonesia’s energy future.

According to Djoko Siswanto, the head of SKK Migas, the warning letter is a step towards ensuring Inpex begins production as soon as possible. He emphasized the importance of securing gas buyers in order to initiate the project without further delays. The government has been clear that the project cannot be delayed any longer, as Indonesia faces growing energy challenges.

Indonesia’s Energy Minister, Bahlil Lahadalia, has also weighed in on the matter, urging Inpex to start production this year. Bahlil has made it clear that if progress is not made, the government will consider revoking the Masela Block concession. He pointed out that Inpex has held the concession since 1998 but has yet to present a field development plan (POD), a critical step towards production.

Bahlil’s comments underline the urgency of the situation, as he has also stated that similar actions would be taken against other oil and gas operators who have completed exploration but have failed to begin production. This includes 300 wells that have been fully explored but remain inactive.

The Minister’s position is part of a broader strategy to increase Indonesia’s oil production. In recent years, the country has seen a significant drop in production, with output falling by more than 60% from 1997 levels. At the same time, national oil consumption has increased, turning Indonesia from a net exporter of oil in 1998 into a net importer.

The government is now focusing on reversing this trend by pushing for the activation of more wells. Bahlil has set a target of producing 1 million barrels of oil per day by 2029, a significant increase from the current production levels of around 600,000 barrels per day. Achieving this goal will require more active wells, particularly the 300 that are currently dormant.

In addition to encouraging the development of new wells, the government is also exploring ways to maximize production from existing, aging oil fields. This includes the use of Enhanced Oil Recovery (EOR) technologies, which are designed to extend the life of older wells and increase their output. With many of Indonesia’s oil wells over 75 years old, this technology is seen as crucial to maintaining production levels.

Indonesia’s energy strategy aims to reduce its dependency on imported oil and increase its domestic production capacity. The pressure on Inpex to move forward with the Masela Block project is part of a broader effort to ensure energy security and support the country’s economic growth in the years to come. (Uki Ruknuddin)