Indonesia Unveils 54 Oil and Gas Blocks for Investment Until 2028

Government Initiative Aims to Revitalize Oil Production and Tap into Untapped Reserves

Indonesia has identified 54 oil and gas blocks with significant potential for investment opportunities up to 2028, according to a director at the energy ministry, as part of efforts to bolster the nation’s oil and gas reserves. The government is prioritizing the reversal of Indonesia’s declining oil production trend, targeting an output of one million barrels of oil per day and 12 billion standard cubic feet per day of gas by 2030. Half of the identified blocks will be offered through regular auctions, while the remainder will be awarded via direct offers following a joint study.

This move aligns with the government’s focus on ramping up exploration activities in untapped hydrocarbon basins, with recent offerings for five oil and gas blocks. Moreover, the upstream regulator, SKK Migas, is keen on promoting exploration in mature areas, such as the North Sumatra and Northeast Java basins, which have significant untapped reserves estimated at over 9 billion barrels of oil equivalent.

Recent discoveries, including Mubadala Energy’s Tangkulo-1 exploration well, underscore the vast hydrocarbon potential in these areas, with the potential for more than 2 trillion cubic feet of gas-in-place in the South Andaman Block alone. The government’s proactive approach to unlocking investment opportunities and promoting exploration initiatives signals a concerted effort to revitalize Indonesia’s oil and gas sector and capitalize on its abundant natural resources.

Source: OGN