ExxonMobil’s US$15 Billion Bet: Can It Change Indonesia’s Energy Future?

Artificial Intelligence (AI), as the most important general-purpose technology of today, is rapidly entering industries, creating significant potential for innovations and growth. Instead of relying on traditional and human-centered business processes, many companies are beginning to adopt AI as their solution. Therefore, the oil and gas industry is also undergoing a major transformation, integrating AI-driven technologies to optimize operations, enhance decision-making, and improve safety. The primary goal of AI adoption in this sector is to improve efficiency, which means accelerating processes, reducing operational risks, and minimizing costs. AI can process vast amounts of data faster and more accurately than humans, leading to better resource management and production optimization.The first applications of AI in the oil and gas industry were considered in the 1970s, primarily in data analysis and reservoir modeling. Early AI-driven systems helped geologists interpret seismic data, identifying potential drilling sites with higher accuracy. Over time, advancements in machine learning and automation have enabled more sophisticated applications, from predictive maintenance to real-time monitoring of assets. The petroleum industry is typically divided into three main segments: upstream, midstream, and downstream : Upstream – Focuses on exploration and production of crude oil and natural gas. AI enhances reservoir modeling, seismic data analysis, and drilling efficiency, reducing costs and improving accuracy.Midstream – Involves transportation and storage of crude oil and natural gas. AI optimizes pipeline monitoring, predictive maintenance, and logistics, ensuring safe and efficient operations.Downstream – Covers refining, processing, and distribution of petroleum products. AI improves refinery operations, quality control, demand forecasting, and supply chain management, increasing efficiency and reducing waste.While AI adoption offers numerous advantages, it also presents challenges. High implementation costs, the need for skilled professionals, and cybersecurity risks are major concerns. Integrating AI into traditional infrastructure requires significant investment and adaptation. However, these challenges can be addressed through strategic investments in AI training programs, stronger cybersecurity frameworks, and phased AI integration to minimize disruption. Despite these hurdles, AI is essential for the future of the oil and gas industry. It enhances efficiency, reduces environmental impact, and ensures safer operations. As technology evolves, AI-driven solutions will continue to drive innovation, making the industry more sustainable, competitive, and adaptable to future energy demands

Kangean Energy Indonesia (KEI) is set to begin a large-scale 3D seismic survey in the Kangean Islands, East Java, after fulfilling all required permitting procedures, including environmental and social compliance assessments. The confirmation was issued by the Jawa-Bali-Nusa Tenggara (Jabanusa) Regional Office of the Special Task Force for Upstream Oil and Gas, SKK Migas, marking the survey as one of the key upstream exploration efforts in the region. Anggono Mahendrawan, Head of SKK Migas Jabanusa, stated that seismic acquisition plays a crucial role in determining the direction of Indonesia’s oil and gas exploration activities. According to him, subsurface geological data generated from seismic imaging is essential not only for contractors but also for the government in preparing long-term resource planning. “This seismic survey is actually a national necessity. We need geological layer data to support exploration activities and secure future energy resources,” Anggono said during a discussion with ruangenergi.com in Jakarta on Monday, 3 November 2025. The survey will produce highly detailed information regarding the structure, depth, and lithology of underground rock formations. SKK Migas emphasized that such data is a critical determinant in assessing hydrocarbon potential in a given area and will be incorporated into the national upstream exploration database. The data will serve as the technical basis for decision-making on subsequent drilling plans, investment prioritization, and future working area allocations. Anggono acknowledged that upstream exploration remains a high-risk investment for contractors due to the uncertainty of commercial discoveries. However, he underlined that seismic datasets retain long-term value for the country regardless of discovery outcomes. “If no reserves are found, the cost won’t be recovered, but the data will still be beneficial for future energy development,” he noted, referring to the seismic data retention system that supports the national exploration master plan. SKK Migas also highlighted that the 3D seismic activity by KEI requires substantial investment and has undergone rigorous environmental and social impact verification. The agency stressed that adherence to regulatory and community safeguards is a prerequisite for the sustainability of upstream operations, especially in offshore and remote island clusters such as the Kangean region. Beyond its technical purpose, the survey is aligned with SKK Migas’ broader strategy to increase exploration intensity across frontier and underexplored basins in support of the national one-million-barrels-per-day oil production target. Strengthening the national subsurface data inventory is considered crucial to attracting upstream investors, reducing geological uncertainty, and enhancing resilience in domestic energy supply. Further updates on survey progress, including data acquisition scope, timeline for processing and interpretation, and follow-up drilling plans are expected to be announced after the initial operational phase in the coming months. Writer: Azzahra Luna Prasetyo

In a notable collaboration with SLB, the world's leading energy service company, SPE ITS SC held an enlightening seminar in the format of a talk show. This event was held both online and onsite at Aula BG Munaf at Institut Teknologi Sepuluh Nopember, Surabaya, on September 3, 2023. The main goals of this seminar were, firstly, it aimed to help participants understand the value of SLB in the energy industry, the impact it has, and the opportunities available through the student vacation trainee program. It also aimed to explain the path to getting a full-time job at SLB and shared potential opportunities for university students. This included insights into the selection process and the criteria for eligibility for the trainee program, as well as experiences from previous trainees at SLB.This event is divided into three sessions, the first one is the Introduction to SLB and its commitment toward sustainability: the current & future condition of the oil and gas industry presented by Indah Dwie Jayanti as SLB Campaign Manager to ITS. For decades the oil and gas industry has been in high demand which therefore leads to high profit. With future career prospects, many university fresh-graduates are interested in joining companies involved in the oil and gas industry such as SLB. Hence, the committee was inspired to organize this event to highlight SLB's dedication to sustainability and responsible practices in the oil and gas industry. “The event’s purpose is to serve as a platform to educate, engage, and attract individuals who share the company’s commitment to sustainability while also enhancing SLB’s reputation in the industry”.Sustainability was chosen as the central theme of this event because it addresses global environmental concerns which aligns with SLB's values and mission, and reflects the company's commitment to corporate responsibility and long-term viability. By emphasizing sustainability, SLB demonstrates its dedication to addressing the challenges of our time and contributing to a more sustainable and responsible future.The following segment promises to be an enlightening discussion centered on career prospects. It covered crucial topics such as student vacation trainee opportunities, internships, and insights into future careers in the oil & gas industry. This session was presented by Verra Lakshmi, who holds the esteemed position of SLB Recruiting Manager in Indonesia. This shed light on the question, "Why SLB?" for aspiring professionals.The final session of the event is a significant one, Career Masterclass. In this session, participants had the invaluable opportunity to receive CV feedback and engage in a mock interview, providing them with practical insights and guidance to enhance their professional journey.“Through this event, we strive to create a positive impact by promoting sustainability, sharing knowledge, and fostering innovation. We also aim to contribute to a more sustainable and responsible oil and gas industry while also supporting the professional development of attendees interested in sustainability and career opportunities within SLB.” Written By: Arya Nugraha Aulia Rahman Yusup

PT Pertamina Hulu Energi (PHE), Indonesia's state-owned upstream oil and gas subsidiary, recorded total oil production of 475,000 barrels per day (bopd) through April 2026, a significant drop from the 556,000 bopd achieved across 2025. The company's CEO, Awang Lazuardi, attributed the decline to a combination of domestic operational setbacks and geopolitical turbulence abroad, revealing the breadth of pressures bearing down on Indonesia's largest upstream operator.At home, the most disruptive incident occurred at Blok Rokan in Riau, PHE's single largest producing asset. Early in the year, a gas supply disruption arose after a pipeline integrity failure, specifically a leak in a transmission line operated by Transportasi Gas Indonesia (TGI). The outage lasted more than 20 days, severely curtailing the gas-powered energy supply to production facilities across the block. "Average oil production at Rokan dropped quite sharply," Awang said during a hearing with the House of Representatives' Commission XII in late May. Domestic output for the period stood at 367,000 bopd, down from 396,000 bopd in 2025.Further domestic pressure came from Lapangan Banyu Urip, a joint-operated asset with ExxonMobil. PHE encountered facility constraints that limited efforts to ramp up gas production at the field, compounding the output shortfall at a time when the company was already struggling to recover losses at Rokan.On the international front, PHE holds a participating interest in West Qurna-1, an oil field in southern Iraq. Due to force majeure caused by the conflict between the United States, Israel, and Iran, the Iraqi government ordered a temporary shutdown of the field. The move cost PHE approximately 100,000 bopd of production. Though operations have since been permitted to resume, output remains at less than ten percent of capacity, allocated solely to meet Iraq's domestic needs, and a full recovery timeline remains uncertain.Together, these disruptions have pushed PHE's total production well below the government's 2026 lifting target of 610,000 bopd set in the state budget. Awang acknowledged the scale of the challenge but pointed to the temporary nature of several setbacks. Industry observers, however, note that structural vulnerabilities including aging infrastructure, geopolitical exposure, and dependence on a small number of high-output blocks continue to pose long-term risks to Indonesia's energy security goals.Written by: Akhirian Taka