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Indonesia Overview

Indonesia

in figures

Oil reserves3.2 billion barrels

Oil production808,000 bopd

Gas reserves2.8 tcm

Gas production73.2 bcm

Eastern potential

Indonesia made its first oil discovery in North Sumatra in 1883, leading to the establishment of Royal Dutch Shell in 1890. In the 1990s, oil production peaked,  surpassing 1.6 million bopd. Since then, production steadily declined until the country finally became a net importer of oil in 2004, and left OPEC in 2008. In December 2015, the country re-entered OPEC, where it has sought a special status as a mediator with exemption from production cuts.

In December 2018, Indonesia had 3.2 billion barrels of proven oil reserves, down from 4 billion barrels at the beginning of 2013. Even with an aggressive offshore exploration programme and EOR, oil production has continued to decline as recent discoveries have yet to reach full capacity. Set to become the world’s seventh-largest economy by 2030, Indonesia’s appetite for more energy will undoubtedly continue to increase in the next decades and the local hydrocarbons industry will likely be unable to meet the demand.

In January 2017, the Ministry of Energy and Mineral Resources issued a regulation effectively replacing Indonesia’s cost recovery mechanism with a gross production split scheme for the sharing of hydrocarbons output between the contractors and government under upstream PSCs.

A large portion of Indonesia’s produced gas is exported as the nation’s gas production is dominated by foreign companies. CNOOC, Total E&P Indonesia, ConocoPhillips, BP Tangguh and ExxonMobil Indonesia are some of the major foreign players in the country.

With diminishing oil reserves, increasing domestic energy demands and vast, untapped conventional and unconventional gas wealth totalling 2.8 tcm (100 tcf), Indonesia is gradually reorienting its hydrocarbons industry. Supported by the government, gas production increased by 25% between 2002 and 2012. These gains were lost by 2014, but by 2018  production had increased to 73.2 bcm (2.58 tcf). The country has significant shale gas potential, which is being studied.

Jakarta has moved to reform its oil and gas industry, but long-term investment has been complicated by nationalistic overtures and legal barriers to exploration. Investor concerns over new energy regulations have raised questions about the future of the industry.

IEA calls for hike in hydrogen investment
NEWS
France - October 05, 2021

International Energy Agency (IEA) has called on governments to step up investment in hydrogen to meet a USD 1.2-trillion…

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Indonesia Energy Corp hits oil onshore
NEWS
Indonesia - September 16, 2021

Indonesia Energy Corporation expects to double its production after discovering oil in two onshore exploration wells on the Kruh…

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Indonesia books

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BP’s $2-billion Indonesia gas project greenlit
NEWS
Indonesia - August 20, 2021

Indonesia’s SKK Migas has approved BP’s plans for the next phase of the Tangguh LNG project, the government agency said on…

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Eni brings giant Indonesia gasfield on stream
NEWS
Indonesia - April 26, 2021

Eni is marking first gas at its giant Merakes gasfield offshore East Kalimantan, Indonesia, the super-major revealed on…

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Indonesia’s Exploration and Production Licence Areas 2020 Map

Indonesia maps

Indonesia’s Exploration and Production Licence Areas 2020

ALL MAPS
Fire extinguished at Pertamina’s Balongan refinery
NEWS
Indonesia - March 31, 2021

Indonesian NOC Pertamina has succeeded in putting out a major fire at its Balongan refinery on West Java, the company said on…

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Emmanuel EHIEMUA
Interview
Nigeria - March 09, 2021

Emmanuel Ehiemua, founder and managing director of Oracle Limited, talks to The Energy Year about why local players should…

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Indonesia Badak LNG
Articles
Indonesia - December 02, 2020

Indonesia’s archipelagic nature has pushed it to develop local LNG production and distribution. The government is betting on both large- and small-scale facilities…

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biofuels
Articles
Indonesia - November 05, 2020

Despite the challenges posed by the pandemic, Indonesia is continuing to roll out an ambitious biofuels programme which is set to change the course of its hydrocarbons…

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Eddy-KURNIAWAN-LOGAM
Interview
Indonesia - October 15, 2020

Eddy Kurniawan Logam, president-director of Logindo Samudramakmur, talks to The Energy Year about how Covid-19 has impacted the company’s operations and how Indonesia…

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Iwan Chandra
Interview
Indonesia - October 14, 2020

Iwan Chandra, president-director of Baker Hughes Indonesia, talks to The Energy Year about expectations for the market and project work in light of the Covid-19…

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