Exploring Material Management in Oil and Gas through PHE WMO Shorebase Visit

Surabaya, SPE ITS SC – PT MedcoEnergi Internasional Tbk, commonly known as MedcoEnergi, is a leading Indonesian company engaged in the Oil & Gas, Power Generation, and Copper & Gold Mining businesses. In the Oil and Gas sector, MedcoEnergi focuses on exploration and production activities, primarily within Indonesia.As of today, Friday, October 24, 2025, the Sustainable Development Report on its official website highlights Indonesia’s progress toward achieving SDG 7 – Affordable and Clean Energy. The report shows that Indonesia is moderately improving, although significant challenges remain. This demonstrates Indonesia’s continuous efforts to achieve the United Nations’ Sustainable Development Goals (SDGs) and its broader vision of realizing Indonesia Emas 2045.On Monday, October 13, 2025, MedcoEnergi announced through an official press release that the company has been reducing its gas fuel consumption to improve operational efficiency and support the national energy transition agenda. Several initiatives have been implemented across its oil and gas assets. One of the key initiatives is the optimization of the Waste Heat Boiler (WHB) operating mode at the Grissik field, Corridor Block, South Sumatra. WHB is a type of boiler that recovers and utilizes residual heat and exhaust gases from production processes that is still have sufficient power to generate steam, in order to improving efficiency and reducing environmental impact. This optimization has successfully reduced carbon emissions by approximately 19,000 tCO₂e per year.Additional optimization efforts have also been carried out at both offshore and onshore sites. At the Natuna Offshore field, MedcoEnergi optimized operations at the Terubuk-Belida facility by rerouting production flow to operate without compressors, resulting in an annual emissions reduction of about 24,000 tCO₂e. Onshore, the company has implemented electrification—the conversion of systems or processes powered by fossil fuels to electricity-based systems—by switching from gas-fueled generators to the national clean power grid (PLN), alongside optimizing operational modes. Electrification helps reduce energy costs, improve energy efficiency, and support the transition to clean and renewable energy.“Fuel gas efficiency and emission reduction are not merely technical targets but integral to MedcoEnergi’s long-term sustainability roadmap. Since 2022, our initiatives have cumulatively reduced fuel gas consumption by around 18 MMscfd. This achievement reflects our commitment to sustainable innovation, operational excellence, and responsible energy development, creating long-term value for stakeholders while reducing our carbon footprint,” said Ronald Gunawan, Director & Chief Operating Officer of MedcoEnergi.This demonstrates that MedcoEnergi, as a major player in the oil and gas industry, is not solely driven by profitability but also operates responsibly, consciously contributing to environmental sustainability starting from within its own operations.Moving forward, MedcoEnergi will continue strengthening its sustainability agenda through both medium and long-term roadmaps, while also implementing new technologies such as the Organic Rankine Cycle (ORC)—a thermodynamic cycle that uses organic fluids instead of water to convert heat into electricity, Steam Turbine Generators which convert steam heat into power, and energy storage systems. These initiatives reaffirm MedcoEnergi’s role as an adaptive and responsible energy company, fully committed to supporting Indonesia’s energy resilience and sustainable future.Writer: Aura Hammada

Early in 2024, there is a heightened risk of disruptions to the global oil supply due to the conflict in the Middle East —a region that supplies one-third of the world's seaborne oil trade— especially for oil flows that pass through the Suez Canal and the Red Sea. The International Energy Agency (IEA) has warned that the US and UK airstrikes on Houthi targets in Yemen in response to attacks on tankers in the Red Sea have expressed worries  about the potential for an escalation of the conflict. This important trade route handled almost 10% of the world's seaborne oil commerce in 2023, or about 7.2 million barrels per day (mb/d) of crude and oil products, as well as 8% of the world's trade in liquefied natural gas (LNG). The primary alternate shipping route around the Cape of Good Hope in Africa prolongs voyages by up to two weeks, which puts strain on international supply systems and raises the cost of freight and insurance.Stable oil prices despite escalating tensionsOil companies are taking a cautious stance in response to these escalating geopolitical tensions in the Middle East. Mike Sommers, CEO of the American Petroleum Institute, has expressed worries about the growing chance of the crisis intensifying and derailing oil supplies. And although Oil prices have stayed comparatively steady despite the tensions; some experts attribute this to the impact of economic considerations on oil prices. Thus far, the Houthi raids and other Red Sea disruptions—such as the diverting of supplies away from the Suez Canal—have not had a substantial effect on energy prices. Experts have cautioned that tensions in Iran, particularly around the Hormuz, may have an impact on oil prices and that the longer the violence in Gaza continues, the more likely it is that a regional crisis may break out. The closure of important trade routes, which would have previously led to a significant increase in energy prices, has not had the same effect due to the market's confidence in the availability of supply.Assessing Supply and DemandThe World Bank's Commodity Markets Outlook in October 2023 provided a preliminary assessment of the potential near-term implications of the conflict. In a "medium disruption" scenario, the global oil supply would be reduced by 2-4 million barrels per day, initially increasing oil prices by 21% to 35%. In a "large disruption" scenario, with a reduction of 5-10 million barrels per day, oil prices could increase by 56% to 75% initially. Additionally, The IEA has revised its forecast for oil demand upward, anticipating a larger increase in global oil demand in 2024. The IEA's forecast indicates a balanced oil market, with world oil demand expected to grow by 1.1 million barrels per day in 2024, and non-OPEC supply growth projected to reach 1.2 million barrels per day. This balanced outlook is significant, considering the potential impact of the geopolitical tensions and disruptions in the Red Sea on the global oil supply. The agency's assessment of a "comfortable" oil market in 2024, despite the disruptions in the Red Sea, reflects the resilience of the oil market due to factors such as ample oil and gas supply, weaker demand in certain countries, and the ability of tankers to find alternative routes to deliver oil and gas products. ConclusionWhile the present upheavals and wars aren't having a big effect on the world energy markets, the international community should still be prepared and pay close attention to the Middle East's ongoing volatility. The developing scenario in the region could result in further escalation and have an effect on the energy landscape. Thus, in 2024, it will still be imperative to keep an eye on Middle Eastern geopolitical developments and any potential effects they may have on the energy markets.Written By: Arya Nugraha Aulia Rahman YusupReferences:Oil prices steady despite Middle East tensions, but risks are rising | Oil and Gas News | Al JazeeraOil Market Report - January 2024 – Analysis - IEAConflict in Middle East Could Bring ‘Dual Shock’ to Global Commodity Markets (worldbank.org)Geopolitical tensions in Middle East bear risks for oil supplies — IEA - Business & Economy - TASSIEA's Birol predicts 'comfortable' oil market despite Red Sea disruption | Reuters

Surabaya, SPE ITS SC - Indonesia’s upstream oil and gas regulator, SKK Migas, has issued a formal warning to Inpex, Japan’s largest oil and gas exploration and production company, has been operating in Indonesia for decades. Through its subsidiary Inpex has yet to begin gas production, prompting growing frustration from Indonesian authorities.  According to SKK Migas, the regulator is applying pressure through both formal warnings and the threat of regulatory action, including the possibility of revoking the concession if significant progress is not achieved. The move reflects Indonesia’s broader push to accelerate upstream projects to meet rising domestic demand and strengthen its role in the global LNG market. Industry observers note that the Masela project could be a game-changer for Indonesia’s gas sector, but only if development is expedited. The government’s warning underscores the urgency: after more than two decades since its discovery, the Masela Block remains untapped.  Writer: Christya Amanda

Indonesia is at a crucial point in its oil and gas journey. On one hand, the country has vast untapped energy resources that could fuel the economy for years to come. On the other, many of its existing oil fields are aging, leading to declining production. In 2023, Indonesia’s oil and gas industry was valued at around IDR 280 trillion, and experts predict it could grow to IDR 1,050 trillion by 2032. However, sustaining this growth will require new discoveries and smarter investments in exploration.Right now, Indonesia produces about 576,000 barrels of oil per day (bpd), and the government hopes to push this number to 600,000 bpd by 2025. However, the challenge is that 70% of Indonesia’s oil wells are mature, meaning their output is slowing down. If new reserves aren’t developed soon, Indonesia will have to rely more on imports, which could drive up costs and impact energy security.The good news? There’s still a massive opportunity waiting to be explored. Out of 128 sedimentary basins across Indonesia, only 20 are actively producing oil and gas. That means 68 basins remain untouched, offering huge potential for new discoveries. If properly explored, these areas could significantly boost Indonesia’s production and reduce dependence on imported oil.To tap into this potential, both domestic and international companies are stepping in with major investments. One of the biggest projects is Eni’s Geng North Project, a IDR 192 trillion gas project expected to start production by 2027. Similarly, BP is expanding its Tangguh LNG facility in West Papua with a IDR 112 trillion investment, incorporating carbon capture technology to make production more efficient and sustainable. Meanwhile, Petronas is increasing its footprint in Indonesia by setting up operations in East Java and exploring other regions. These investments highlight global confidence in Indonesia’s oil and gas potential.The government isn’t standing still either. Under President Prabowo Subianto, several initiatives are in place to attract more foreign investment, reactivate 5,000 idle oil wells, and speed up the permitting process for new projects. If these efforts are successful, Indonesia could see a major boost in oil and gas production, strengthening energy security and ensuring long-term economic stability.