Indonesia is looking for new technologies to improve oil drilling

Officials said that Indonesia issued a new regulation on Tuesday to encourage investment by oil drilling technology providers to increase production at existing wells.

Yuliot Tajung, the deputy energy minister, told reporters that this policy aims to reactivate idle wells as part of an effort to increase oil production to one million barrels per daily (bpd) by 2029-2030, from less than 600,000.

Indonesia, once a net oil and gas exporter, has seen its production steadily decline over the last decade due to ageing of wells and lack of investment.

Under his leadership, President Prabowo subianto wants to achieve energy independence. Energy minister Bahlil Lahadalia said that the reactivation and re-use of idle wells would increase oil production up to 200,000 barrels per day.

Oil and gas operators can now partner with technology providers in order to boost output of old or idle fields or wells. These are often neglected by operators who prefer to focus on newer, more efficient wells.

Yuliot stated that many of these operators require the support of vendors who have the latest technologies.

The government has identified more than 100 structures or fields and 2,500 wells that operators may open to such vendors.

Yuliot stated that the government was preparing 74 oil and gas blocks for companies to bid on in the coming year.

(source: Reuters)