Australia’s $54-billion Gorgon LNG plant has received a cargo that will allow it to cool its infrastructure prior to its first shipment, Chevron reported on…
READ MOREIndonesia's Energy Industry
in figures
Oil reserves2.4 billion barrels
Oil production692,000 bopd
Gas reserves1.3 tcm
Gas production59.3 bcm
Eastern potential
Indonesia’s oil and gas industry is a key element in the country’s historic economic development. First oil was discovered in North Sumatra in 1883, which led to the establishment of super-major Royal Dutch Shell in 1890. Production of hydrocarbons continues to be a crucial part of the economy and is increasing in significance as reserves are gradually lowered and local consumption rises. Despite being Southeast Asia’s second largest economy, the government has struggled with making its upstream plays attractive to foreign investors in the modern era due to what are seen as protectionist policies and a history of corruption.
The OPEC member’s upstream and natural gas activities are overseen by SKK Migas. The task force has initiated an ambitious roadmap to shake up the industry and recoup its losses, attract investment and bring the industry back to its former peak in the 1990s. NOC Pertamina is the dominant player in the upstream sector, and has been joined by international players such as China National Offshore Oil Corporation, Total E&P Indonesia, ConocoPhillips, BP Tangguh and ExxonMobil Indonesia. The island nation’s prospective gas plays are mainly found on offshore basins that are not associated with its crude production. E&P operations on its coal bed methane and shale gas are being pushed by the state as a key economic lifeline for the nation.
Indonesia is a large player in the global LNG export market. In the 1990’s it accounted for one-third of international trade of the resource. However it has lost it market dominance due to a rise in LNG exports from competitors such as Qatar, Australia and the US. The country remains a significant regional supplier of LNG, with Japan, South Korea and China among its top buyers.
The Asian nation is also seeking investment in its downstream and midstream sectors. Indonesia boasts a large array of refineries. However, the country’s refining capacities are inefficient for its demand. Indonesia relies on imports to fulfil its petroleum usage. Pertamina owns and operates most of the country’s refining capacity. The country has no international pipelines for petroleum trade and maritime transport remains a crucial component of its energy value chain. State-run Perusahaan Gas Negara manages more than 90% of the country’s midstream infrastructure.
Mubadala Energy has made a major ultra-deepwater gas find off Indonesia.
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READ MOREFugro has won a contract to provide marine surveying at Inpex's 9.5-million-tpy Abadi LNG project in Indonesia.
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READ MORESameer Mohammed, CEO and managing director of Ocean Oilfield Integrated Solutions, talks to The Energy Year about how the…
READ MOREOn January 13, Lapindo Brantas plans to resume natural gas drilling near Surabaya, the nation’s second-largest city, the Indonesian upstream company announced…
READ MORECue Energy has spud an exploration well as part of the Mahakam Hilir production-sharing contract in Indonesia, the Australian junior announced Thursday.
The Naga…
READ MOREIranian ambassador to Indonesia Valiollah Mohammadi Nasrabadi talks to TOGY about the historic nuclear deal between Iran, the US, the UK, France, Germany, Russia and…
READ MOREExxonMobil announced Monday that its onshore central processing facility in the Banyu Urip field in Indonesia had started up successfully, increasing production to over…
READ MOREUS energy companies ConocoPhillips and Chevron have requested to sell their stakes in an offshore block in Indonesia, according to an Indonesian energy official’s…
READ MOREPresident director of IndrillCo Group Mohamad Bawazeer discusses the economics of shale gas development, the challenges to fabricating rigs locally and potential areas…
READ MORESaudi Aramco is looking to make further investments in Indonesia, company CEO Amin H. Al Nasser said on Thursday.
Saudi Aramco and Pertamina will jointly invest in…
READ MOREJapanese Ambassador to Indonesia Tanizaki Yasuaki talks to TOGY about Japan’s direct investments in Indonesia and his vision on the bilateral relation in the future.…
READ MOREFirman Yaman, CEO of Saka Energi Indonesia, talks to TOGY about the obstacles to oil and gas exploration in Indonesia and the role played by junior companies in the…
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