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Indonesia Overview

Indonesia

in figures

Oil reserves3.2 billion barrels

Oil production808,000 bopd

Gas reserves2.8 tcm

Gas production73.2 bcm

Eastern potential

Indonesia made its first oil discovery in North Sumatra in 1883, leading to the establishment of Royal Dutch Shell in 1890. In the 1990s, oil production peaked,  surpassing 1.6 million bopd. Since then, production steadily declined until the country finally became a net importer of oil in 2004, and left OPEC in 2008. In December 2015, the country re-entered OPEC, where it has sought a special status as a mediator with exemption from production cuts.

In December 2018, Indonesia had 3.2 billion barrels of proven oil reserves, down from 4 billion barrels at the beginning of 2013. Even with an aggressive offshore exploration programme and EOR, oil production has continued to decline as recent discoveries have yet to reach full capacity. Set to become the world’s seventh-largest economy by 2030, Indonesia’s appetite for more energy will undoubtedly continue to increase in the next decades and the local hydrocarbons industry will likely be unable to meet the demand.

In January 2017, the Ministry of Energy and Mineral Resources issued a regulation effectively replacing Indonesia’s cost recovery mechanism with a gross production split scheme for the sharing of hydrocarbons output between the contractors and government under upstream PSCs.

A large portion of Indonesia’s produced gas is exported as the nation’s gas production is dominated by foreign companies. CNOOC, Total E&P Indonesia, ConocoPhillips, BP Tangguh and ExxonMobil Indonesia are some of the major foreign players in the country.

With diminishing oil reserves, increasing domestic energy demands and vast, untapped conventional and unconventional gas wealth totalling 2.8 tcm (100 tcf), Indonesia is gradually reorienting its hydrocarbons industry. Supported by the government, gas production increased by 25% between 2002 and 2012. These gains were lost by 2014, but by 2018  production had increased to 73.2 bcm (2.58 tcf). The country has significant shale gas potential, which is being studied.

Jakarta has moved to reform its oil and gas industry, but long-term investment has been complicated by nationalistic overtures and legal barriers to exploration. Investor concerns over new energy regulations have raised questions about the future of the industry.

The Oil & Gas Year Indonesia 2020 is currently under production.

Indonesia books

More books
Indonesia Petroleum Contract Areas Map

Indonesia maps

Indonesia Petroleum Contract Areas

ALL MAPS

Indonesia’s geothermal drive

February 18, 2020

Winfried Wicklein, country director for Indonesia at the Asian Development Bank (ADB), talks to TOGY about how Indonesia’s LNG…

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NAPEC 2020 News
February 11, 2020

Gary Selbie, president of Premier Oil Indonesia, talks to TOGY about the changes needed to realise the country’s gas future, pressure on the regional LNG market and…

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Tripatra Dhira Nandana
February 04, 2020

Dhira Nandana, president-director and CEO of Tripatra Engineers and Constructors, talks to TOGY about difficulties in carrying out EPC projects in Indonesia and the…

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Hakimul Batih IIEE
October 22, 2019

Hakimul Batih, executive director of the Indonesian Institute for Energy Economics (IIEE), talks to TOGY about the need to switch to a net-split PSC model to restore…

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Eni finds gas in Indonesia
December 19, 2018

Eni has discovered 15 metres of net gas deposits in a well in the Merakes East prospect offshore Indonesia, the super-major announced on Wednesday.

“The production…

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Lion ups Indonesia stake
December 12, 2018

Australia’s Lion Energy has agreed to acquire an additional 16.5% share in Indonesia’s Seram (Non Bula) PSC for a total of USD 44 million, the company announced on…

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