Indonesia looks to unlock its upstream potential by offering more than 100 previously untapped oil and gas basins to global investors for exploration.
Southeast Asia’s biggest economy, which is also a major oil and gas producer, aims to reverse its decade-long production decline and bolster national energy security.
Indonesia targets to nearly double its oil production to 1 million barrels per day (bpd) of crude oil. Currently, Indonesia pumps about 600,000 bpd of crude.
Indonesia has developed only 20 out of 128 identified oil and gas basins across its archipelago, Deputy Minister of Energy and Mineral Resource, Yuliot Tanjung, said at the launch event to attract investments in Indonesia’s energy future.
The government is allocating resources to its Geological Agency to conduct advanced 2D and 3D surveys, paving the way for exploration to unlock the potential of these resources, the official said.
“Our shared vision is clear: by 2029, Indonesia will achieve its production target of 1 million barrels of oil per day, boost energy security, and advance sustainable development,” Yuliot said at the event.
Indonesia has also prepared 75 oil and gas blocks across Sumatra, Kalimantan, Sulawesi, Papua, and offshore areas for auctions and concessions. Nine of these oil and gas blocks have been awarded to business entities, with several more blocks to follow, the deputy energy minister added.
Earlier this year, Indonesia awarded five strategic oil and gas blocks to international and domestic players. The awards are part of Indonesia’s broader upstream revival strategy, with nearly 60 additional blocks expected to be offered over the coming years.
Once a key OPEC member and oil exporter, Indonesia has increasingly relied on imports to meet domestic energy demand in recent years. Indonesia quit OPEC in 2016 when the cartel struck a deal with non-OPEC producers led by Russia to withhold supply to the market via producers in the OPEC+ pact, reducing their production.
By Charles Kennedy for Oilprice.com
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