Ministry of Energy: Indonesia has 70 Potential Basins That Have Not Been Explored as Offers to Investors

JAKARTADAILY.ID – The Indonesian government through the Ministry of Energy and Mineral Resources (ESDM) seeks to increase oil and gas production to achieve the target of 1 million barrels of oil per day (BOPD) and 12 billion standard cubic feet per day (BSCFD), with various strategies.

This was conveyed by the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif when opening the 46th Indonesian Petroleum Association Convention and Exhibition (IPA CONVEX) in Jakarta, Wednesday, 21 September 2022.

"Strategies to achieve these targets include optimizing existing production, transforming resources for production, accelerating Chemical Enhanced Oil Recovery (EOR) and massive exploration for major discoveries, as well as developing unconventional oil and gas," said Arifin.

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Arifin also emphasized that the potential for investment in upstream oil and gas is still wide open.

"We have 70 potential basins that have not been explored to offer to the investors. We will also accelerate exploration in 5 Working Areas (WK) in Eastern Indonesia, namely Buton, Timor, Seram, Aru-Arafura, and West Papua Onshore," he added.

Currently, there are 4 promising oil and gas projects, namely the Indonesian Deepwater Development (IDD) Gendalo and Gehem, Jambaran Tiung Biru, Abadi Field, and Tangguh Train-3, which are estimated to increase oil and gas production to 65,000 BOPD and 3,484 MMSCFD, with a total investment of more than $37 billion.

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To increase oil and gas production, the Ministry of Energy and Mineral Resources will announce the Phase 2 Oil and Gas WK Auction in 2022, consisting of 5 WK for direct bidding, 1 WK for direct bidding for the Pope Block, 1 WK for regular auction, and 1 WK for direct bidding for West Kampar.

"Furthermore, to attract upstream investment in Indonesia, the Government has made various policy breakthroughs, through contract flexibility, namely PSC Cost Recovery or PSC Gross Split, increasing terms and conditions at the auction stage, fiscal and non-fiscal incentives, online licensing, and regulatory adjustments. for non-conventional," explained Arifin.

Furthermore, Arifin said that the Government would revise the Oil and Gas Law by providing ease of doing business and contract certainty.

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