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…
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.
Indonesia's largest power plant is ramping up its deliveries of biomass fuel as part of a bid to shift to more sustainable…
READ MOREFugro has won a contract to provide marine surveying at Inpex's 9.5-million-tpy Abadi LNG project in Indonesia.
READ MOREEni has completed its acquisition of Neptune Energy’s oil and gas assets for USD 4.9 billion.
READ MORESameer Mohammed, CEO and managing director of Ocean Oilfield Integrated Solutions, talks to The Energy Year about how the…
READ MOREIndonesia has changed its current oil and gas contract terms to incentivise participation in its upstream sector, including…
READ MORESembcorp Industries has signed a USD 1.41-billion gas sales agreement with local independent Medco Energi Internasional to…
READ MORESuryadi Kresno, director of JGC Indonesia, talks to The Energy Year about how the company’s work as an EPC contractor has been impacted by the Covid-19 crisis and the…
READ MORESacha Winzenried, energy utilities and resources leader of PwC Indonesia, talks to The Energy Year about the likely impact of the Covid-19 crisis and oil price drop on…
READ MOREAndrew Livsey, CEO of Horizon Geoconsulting, talks to The Energy Year about whether changes brought about by the pandemic will be lasting ones and positive prospects…
READ MOREGary Selbie, president-director of Premier Oil Indonesia, talks to The Energy Year about how the company kept its offshore operations going after the Covid-19 pandemic…
READ MOREThe Energy Year talks to Gerard Quillien, general manager of Energy Logistics, about operational adjustments that companies are making as a result of the Covid-19…
READ MORERudy Radjab, president-director of Kreasindo Resources Indonesia, talks to The Energy Year about the impact of Indonesia’s Refinery Development Master Plan (RDMP) and…
READ MOREDyah Roro Esti Widya Putri, member of the House of Representatives of the Republic of Indonesia, talks to The Energy Year about the government’s push for renewables…
READ MOREDidik Sasongko, president-director and CEO of Badak LNG, talks to The Energy Year about Indonesia’s drive towards being LNG-powered and solutions for small-scale LNG…
READ MOREThe Oil & Gas Year Indonesia 2020 Strategic Roundtable, sponsored by PwC, brought together an array of top-level executives to discuss the theme “The Indonesian…
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