SKK Migas records average production of community wells at 400 barrels per day

Tangerang, Banten (ANTARA) - The Special Working Unit for the Implementation of Upstream Oil and Gas Activities (SKK Migas) recorded an average production from licensed community wells at around 400 barrels per day. ‘If you include all of them, the average is now almost 400 barrels,’ said SKK Migas chief Djoko Siswanto when met on the sidelines of IPA Convex, Tangerang, Banten, on the evening of Wednesday, 20 May. Djoko explained that each region has different production levels. He noted that the highest ranking came from community wells in Jambi, with peak production reaching around 2,700 barrels of oil. ‘Varies per day. The minimum is about… for each delivery around 200 barrels. Average, in Jambi, yes,’ Djoko said. At that event, Djoko emphasised that the average production from community wells will rise, as pilots are still being conducted at a number of community wells, such as testing water content. ‘(Production) will continue to rise. It’s just a test first; testing the water content, how it is. Like that,’ he said. This achievement is the realisation of the Minister of Energy and Mineral Resources Regulation No. 14 of 2025, which governs joint management of work areas to enhance oil and gas production (migas), particularly through reactivation of old wells and legal processing of community wells. The oil output from community wells will be purchased by Contractors Cooperation Work Contract (KKKS), such as Pertamina and MedcoEnergi, at 80 percent of the price of Indonesian crude oil (ICP). Djoko revealed that production from community wells absorbed by MedcoEnergi is capped at 500 barrels per day. ‘Medco is there. It’s currently capped at 500 barrels per day because the facilities are being prepared,’ he said. In his address at IPA Convex, Energy and Mineral Resources Minister (ESDM) Bahlil Lahadalia stated that Minister of ESDM Regulation No. 14 of 2025 aims to promote equity in the upstream oil and gas sector. The government is not only thinking about large companies, Bahlil said. The government asks KKKS appointed by the government to receive the oil produced by cooperatives or micro, small and medium enterprises (UMKM) managing community wells. ‘The community can now also take the oil harvest properly. Please, those who have been designated, take the oil. Quickly,’ Bahlil said. He also urged Pertamina to speed up absorption of oil production from community wells. Bahlil wants Pertamina to contribute promptly to government programmes. ‘Please speed up, Pertamina. Do not think that SMEs can keep stalling. I call for equal treatment. For the country, siding with state-owned enterprises is important, but the country’s interests are even more important,’ Bahlil said.