S'abonner

Indonesia attempts to relaunch oil and gas exploration

The Indonesian government plans to propose 54 onshore and offshore oil and gas blocks between 2024 and 2028, to stimulate exploration and meet growing demand.

Share:

Relance de projet énergétique en Indonésie.

To counter falling production and stimulate exploration, Indonesia plans to put 54 oil and gas blocks up for sale over a four-year period. Half of these blocks will be offered through direct bids, while the remaining 27 will be offered through regular tenders. According to Ariana Soemanto, Director of Upstream Business Development at the Ministry of Energy and Mineral Resources, these initiatives are aimed at exploring under-explored regions, particularly in the west of the country. Although considered “mature”, Indonesia ‘s western region remains largely unexplored. Nanang Abdul Manaf, advisor to upstream regulator SKK Migas, cites the South Sumatra basin as an example of untapped potential, with around 11.4 billion barrels of oil equivalent yet to be discovered.

Direct offers and joint studies

Direct bids, which begin with a joint study between a potential bidder and the government, are often preferred by investors. This method gives them a competitive edge over regular tenders. Since 2021, 21 blocks in western Indonesia have been acquired through this process, making the region even more attractive to investors. Earlier this week, Indonesia launched its first oil and gas auction of the year with five blocks on offer. These initiatives are designed to boost upstream investment and meet the country’s growing energy demand.

Production sharing conditions

The Indonesian government is also planning to introduce new regulations to simplify production sharing conditions. These changes would make Production Sharing Contracts (PSCs) more competitive and flexible, attracting more investment. The new regulations would include provisions for both conventional and unconventional hydrocarbons. These reforms are part of the government’s efforts to attract more upstream investment. Last September, Indonesia introduced more attractive bidding conditions, pledging to add new oil and gas working zones every year to reach its national production target of 1 million barrels of oil per day and 12 billion cubic feet of gas per day by 2030.

Carbon storage initiatives (CCS)

Separate regulations for the development of carbon storage (CCS) in oil and gas projects are also in preparation. These regulations could include details on preparing and offering permits for carbon storage areas, bidding processes, storage fees and royalty rates. In January, a presidential decree allowed CCS operators to reserve 30% of their storage capacity for imported carbon dioxide. Indonesia has an estimated storage potential of 572gigatonnes of CO2 in saline aquifers and 4.85gigatonnes of CO2 in depleted oil and gas reservoirs for CCS initiatives. Indonesia’s strategy to revitalize its oil and gas sector through exploration of new blocks, carbon storage development and regulatory reforms reinforces this ambition. For example, Indonesia is implementing a strategy to boost its oil and gas industry through the exploration of new blocks, the development of carbon storage solutions and regulatory reforms to achieve its sectoral objectives.

  • Populaires ​
Czech Republic hit by massive power outage disrupting the economy
Donald Trump significantly increases US tax credits for carbon capture
EDF postpones Calvados wind farm to 2027 due to faulty drilling tool
Gabon reactivates deep offshore blocks to stem oil decline
Egypt accelerates El-Dabaa national grid connection for 2026
Trump law reshapes US energy markets according to Wood Mackenzie
US President Donald Trump's One Big Beautiful Bill Act dramatically changes energy investment rules, imposing restrictions on renewables while favouring hydrocarbons, according to a recent report by consultancy firm Wood Mackenzie.
The French Senate adopts the Gremillet bill for energy transition
On July 8, 2025, the Senate validated the Gremillet bill, aimed at structuring France's energy transition with clear objectives for nuclear power, renewable energies, and energy renovation.
Latin America’s six largest economies accelerate transition to renewables
Brazil, Mexico, Argentina, Colombia, Chile, and Peru significantly increase renewable electricity production, reaching nearly 70% of the regional electricity mix, according to a recent Wood Mackenzie study on Latin America's energy sector.
Canada funds 13 Indigenous energy projects with $40mn investment
The Canadian government announces an investment of more than $40mn to fund 13 energy projects led by Indigenous communities across the country, aiming to improve energy efficiency and increase local renewable energy use.
Germany extends electricity price aid to 2,200 companies
The German Ministry of Economy plans to significantly expand aid aimed at reducing industrial electricity costs, increasing eligible companies from 350 to 2,200, at an estimated cost of €4bn ($4.7bn).
France anticipates significant slowdown in emission reductions starting in 2025
French greenhouse gas emissions are expected to rise by 0.2% in the first quarter of 2025, indicating a global slowdown in reductions forecast for the full year, according to Citepa, an independent organisation responsible for national monitoring.
U.S. Senate Approves Accelerated End to Renewable Energy Tax Credits
The Republican budget bill passed by the U.S. Senate accelerates the phase-out of tax credits for renewable energies, favoring fossil fuels and raising economic concerns among solar and wind industry professionals.
Brazil: renewable energy curtailment to jump by 300% by 2035
Rapid growth in solar and wind capacities will lead to a significant rise in electricity curtailment in Brazil, as existing transmission infrastructure remains inadequate to handle this massive influx of energy, according to a recent study by consulting firm Wood Mackenzie.
South Korea reduces its dependence on fossil fuels below 50%
In April 2025, fossil fuels represented 49.5% of South Korea's electricity mix, dropping below the symbolic threshold of 50% for the first time, primarily due to a historic decline in coal-generated electricity production.
US Senate adopts tax neutrality for advanced biofuels
The US Senate Finance Committee modifies the '45Z' tax credit to standardize the tax treatment of renewable fuels, thereby encouraging advanced biofuel production starting October 2025.
Renewable energy: access improving, but financing still insufficient for Africa
According to the 2025 report on global energy access, despite notable progress in renewable energy, insufficient targeted financing continues to hinder electricity and clean cooking access, particularly in sub-Saharan Africa.
China and the United States improve their energy performance in an unstable global context
While advanced economies maintain global energy leadership, China and the United States have significantly progressed in the security and sustainability of their energy systems, according to the World Economic Forum's annual report.
Algeria and Angola strengthen energy cooperation at US–Africa summit
On the sidelines of the US–Africa summit in Luanda, Algiers and Luanda consolidate their energy collaboration to better exploit their oil, gas, and mining potential, targeting a common strategy in regional and international markets.
UK urged to accelerate electricity price reforms
The UK's Climate Change Committee is urging the government to quickly reduce electricity costs to facilitate the adoption of heat pumps and electric vehicles, judged too slow to achieve the set climate targets.
Brussels expands subsidies for low-carbon technologies and nuclear power
The European Commission will extend until the end of 2030 an expanded state-aid framework, allowing capitals to fund low-carbon technologies and nuclear power to preserve competitiveness against China and the United States.
Japan Faces Major Electricity Shortfall of 89 GW by 2050
Japan's grid operator forecasts an energy shortfall of up to 89 GW by 2050 due to rising demand from semiconductor manufacturing, electric vehicles, and artificial intelligence technologies.
EU Approves Targeted Energy Aid for Europe’s Heavy Industries
Energy-intensive European industries will be eligible for temporary state aid to mitigate high electricity prices, according to a new regulatory framework proposed by the European Commission under the "Clean Industrial Deal."
Mauritius launches international tender for floating power plant
Mauritius seeks international investors to swiftly build a floating power plant of around 100 MW, aiming to secure the national energy supply by January 2026 and address current production shortfalls.
Spain and Portugal Strengthen Networks Following April Blackout
Madrid announces immediate energy storage measures while Lisbon secures its electrical grid, responding to the historic outage that affected the entire Iberian Peninsula in late April.
Indonesia Commits 190 Billion USD to Expand Energy Capacity by 2034
Indonesia has unveiled its new national energy plan, projecting an increase of 69.5 GW in electricity capacity over ten years, largely funded by independent producers, to address rapidly rising domestic demand.

LEGAL

FOSSILS

POLICY

RENEWABLE

PLUS

© XMARKET PUBLISHING