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Indonesia Overview

Indonesia

in figures

Oil reserves2.4 billion barrels

Oil production743,000 bopd

Gas reserves1.3 tcm

Gas production63.2 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.

BP signs 30-year PSCs in Indonesia
NEWS
Indonesia - June 22, 2022

BP has completed the signing of two 30-year PSCs with the government of Indonesia for the Agung I and Agung II exploration…

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JGC signs EPC contract for gas project in Indonesia
NEWS
Indonesia - June 21, 2022

JGC Holding Corporation has penned a contract with Singapore’s Jadestone Energy to provide EPC works for gas processing…

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BW Offshore sells FPSO in Indonesia
NEWS
Indonesia - June 06, 2022

BW Offshore has completed the sale of the BW Joko Tole FPSO to the vessel’s current operating consortium in Indonesia, the…

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Energy, Ukraine and the Turkish question Mehmet Ogutcu
Interview
Multinational - May 06, 2022

Mehmet Öğütçü, CEO of Global Resources Partners and chairman of the London Energy Club, talks to The Energy Year about…

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Indonesia maps

Indonesia’s Exploration and Production Licence Areas 2020

ALL MAPS
MTC secures Indonesian FPSO contract
NEWS
Indonesia - April 13, 2022

MTC Engineering has secured a contract for the construction of an FPSO for use on Medco Energi’s Forel field development in…

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ConocoPhillips sells remaining Indonesian assets
NEWS
USA - March 03, 2022

Medco Energi has completed the acquisition of American multinational ConocoPhillip’s entire share capital in Indonesia for USD…

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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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Yulian Dekri
Interview
Indonesia - October 13, 2020

Yulian Dekri, president-director and CEO of Trans-Pacific Petrochemical Indotama (TPPI), talks to The Energy Year about how the company has addressed the Covid-19…

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Interview
Indonesia - October 13, 2020

Dhira Nandana, president-director and CEO of Tripatra Engineers and Constructors, talks to The Energy Year about the post-Covid outlook for EPC in the Indonesian market…

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Chevron, SKK Migas reach investment deal
NEWS
Indonesia - September 29, 2020

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, …

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Jim Truesdell
Interview
Indonesia - September 16, 2020

Jim Truesdell, president-director of Samson Tiara, talks to The Energy Year about how the company is shifting its training courses online and whether Indonesia’s…

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John Anis Pertamina
Interview
Indonesia - September 14, 2020

John Anis, then-general manager of Pertamina Hulu Mahakam and now president-director of Pertamina International Exploration & Production, talks to The Energy Year about…

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Inarno Djajadi
Interview
Indonesia - August 13, 2020

Inarno Djajadi, president-director of the Indonesia Stock Exchange (IDX), talks to The Energy Year about the impact of the Covid-19 crisis on the Indonesian market and…

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Harsono Salim Kotaminyak
Interview
Indonesia - August 03, 2020

Harsono Salim, managing director of Kotaminyak, talks to The Energy Year about the advantages of having a localised workforce and how the Indonesian government has…

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