Arya News - The push follows the launch of an expansive exploration program on Nov. 25, which offers 75 potential oil and gas blocks for the 2025-2027 period.
JAKARTA – Indonesia is poised to attract a fresh wave of foreign investment, particularly from the United Kingdom, Taiwan and Vietnam, into its upstream oil and gas sector, senior officials announced on Wednesday.
The push follows the launch of an expansive exploration program by the Energy and Mineral Resources Ministry and the Upstream Oil and Gas Regulatory Task Force (SKK Migas) on Nov. 25, which offers 75 potential oil and gas blocks for the 2025-2027 period.
Nanang Abdul Manaf, head of the task force on accelerating oil and gas production and lifting, said that a recent roadshow in London drew considerable investor interest.
“Thirty investors attended, including major companies such as BP, Shell, Equinor and Enquest. A joint study is now underway for prospects in Papua and Guyana,” Nanang said during the SKK Migas business support coordination meeting in Sentul, Bogor, as quoted by Kumparan.
Nanang highlighted interest from UK-based Upland Resources Limited, which has applied for three of the ten blocks currently in the joint study phase.
Interest is also coming from Asia. Taiwan’s state-owned energy giant CPC Corporation has engaged with the government to discuss Indonesia’s upstream potential.
“They’re also interested and have even requested direct contact with our team for further guidance,” Nanang added.
This renewed international interest complements expansion plans from existing production sharing contract (PSKKS) holders. Nanang noted that companies such as Eni and BP were collaborating on new areas, while state-owned Pertamina’s upstream arm, PT Pertamina Hulu Energi (PHE), is also seeking to expand its portfolio.
“Of the ten blocks we studied this year, we have completely exhausted them. We are now preparing for next year, which will involve around 60 blocks,” he said.
SKK Migas head Djoko Siswanto confirmed the broader trend, citing interest from Vietnamese firms.
“In addition to the companies mentioned by Nanang, some from Vietnam are also interested,” Djoko said, without naming specific companies.
For 2025, 12 of the planned 20 blocks have been offered across two bidding rounds, including the recently signed Perkasa Block, located offshore East Java. The remaining eight blocks are slated for a third round, pending approval.
Beyond this, 46 blocks are scheduled for release in 2026-2027, while another 26 remain under study.
To support the ambitious exploration drive, the government is calling on domestic financial institutions to play a greater role. Deputy Energy and Mineral Resources Minister Yuliot Tanjung urged state-owned banks to finance exploration projects.
“Not only production activities but also exploration to find new potential and resources require financial support,” Yuliot said during the meeting.
He pointed to the established ecosystem of supporting industries, such as pipe and drilling equipment manufacturers, as further financing opportunities for banks.
“If there are vendors who need financing, this is also a prospect that can be provided by state-owned banks,” he said.
The concerted effort to attract diverse investment and bolster domestic financial backing underscores Indonesia’s strategy to reverse production declines and secure energy independence through intensified exploration and development.
Indonesia’s upstream oil and gas investment realization reached US$9.38 billion as of August, or 55 percent of the full-year target of $16.5 billion.
As SKK Migas noted in July, the investment outlook for 2025 is estimated at between $16.5 billion and $16.9 billion, which would mark the largest upstream oil and gas investment in Indonesia in a decade.
Data from the agency shows that investment peaked at $15.3 billion in 2015 before entering a downward trend, hitting a low of $10.5 billion in 2020 during the COVID-19 pandemic.