TEMPO.CO, Jakarta - Indonesia’s upstream oil and gas regulator said a technological intervention at a major oil field has significantly boosted national crude output.
ExxonMobil Cepu Limited recorded a sharp increase in production at the Banyu Urip A07 well after implementing a water shut-off (WSO) program designed to curb unwanted water flow. The well’s output rose to 12,300 barrels of oil per day (bpd), up from around 4,800 bpd prior to the intervention.
The production gain far exceeded the company’s initial target of adding 1,000 bpd. Following the improvement, the well is now contributing an average incremental output of about 7,500 bpd.
Djoko Siswanto, head of Indonesia’s upstream oil and gas regulator SKK Migas, said the additional output has directly supported an increase in national oil lifting, a key indicator of crude production readiness for sale.
“Good practices like this need to be replicated in other fields to accelerate the achievement of national lifting targets and strengthen energy availability,” Djoko said in a written statement on Wednesday, March 4, 2026.
He described the Banyu Urip field as one of the main pillars of Indonesia’s oil production, making any output increase strategically important for maintaining supply and reinforcing the country’s energy resilience.
The WSO program works by isolating water-producing zones in the lower section of the well to raise the proportion of oil in total output. Techniques used in the operation included bridge plug installation, re-perforation, and acidizing stimulation.
According to SKK Migas, the approach enables operators to optimize existing wells without drilling new ones, allowing production gains to be realized more quickly and at lower cost.
Djoko said targeted technological interventions can deliver rapid production increases while improving efficiency. He added that the cost realization for the operation reached only around 57 percent of the total approved budget.
“Operationally, the work is done without a rig or rigless, utilizing wireline units. This method speeds up the process and is cost-effective,” Djoko said.
He emphasized that optimizing mature wells could become a practical and economical strategy to sustain Indonesia’s oil output growth, reducing reliance on new drilling projects that typically require larger capital investment and longer lead times.
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