Indonesian upstream player Saka Energi is planning to invest up to $1.5 billion between 2022 and 2028 to develop various assets in Indonesia and abroad as it seeks to boost oil and gas production.
Saka, owned by PGN, has a reserves replacement ratio (RRR) of 1.1 times, which means every barrel of oil produced can be replaced with proven reserves of 1.1 barrels, PGN noted in its third-quarter report. Meanwhile, the reserves-to-production ratio (R/P) of Saka is relatively low at around 5-6 years, versus the R/P ratio of compatriots Pertamina Hulu Energi (PHE) and Medco Energi, which ranges between 7-8 years. As a result, it is urgent for Saka to lift the R/P ratio to at least the level of PHE and Medco, according to PGN.
Last year, Energy Voice reported that the assets of troubled upstream player Saka Energi could be put up for sale as part of an effort to resolve the heavily indebted company’s financial predicament amid a tussle between Indonesia’s state-owned enterprises (SOEs).