Indonesia to Begin Construction of Dumai-Sei Mangkei Gas Pipeline Network in 2025

Surabaya, November 14th, 2025 —The Society of Petroleum Engineers (SPE) ITS Student Chapter successfully hosted the Upstream Series 2025, an annual flagship event that brings together academic and industry experts to discuss advancements in upstream oil and gas operations. This year's edition featured a strategic collaboration with Mubadala Energy, further strengthening the event’s technical depth, particularly in drilling fluids and well construction. The keynote speaker, Mr. Habib Baehaki, with 30 years of experience in the oil and gas sector, Mr. Habib Baehaki serves as a Lead Drilling Engineer at Mubadala Energy. He brings extensive expertise in drilling engineering and has been involved in numerous projects across diverse locations. Recognized for his technical skills and leadership, he plays a key role in driving the success of the company’s drilling operations. Mr. Habib delivered an extensive session covering a wide spectrum of drilling engineering concepts and real-world industry challenges. He began by explaining the systems and equipment used in drilling, emphasizing how each component plays a critical role in maintaining wellbore stability and operational safety. He also outlined the various types of wells and highlighted how engineers determine optimal configurations through careful well planning, well profiles, and field-specific considerations. A key part of the session focused on how engineers evaluate subsurface formations. Mr. Habib discussed the interpretation of gamma ray logs, density data, and assessments of porosity and permeability, all of which are crucial in evaluating reservoir quality. He emphasized that modern reservoirs often contain increasing levels of impurities, which significantly raise development and processing costs. Cost considerations formed another major theme of his talk. Mr. Habib highlighted that cost estimation remains one of the most essential skills for drilling and project engineers, as accurate budgeting determines the overall feasibility and success of a project from planning to execution. The collaboration with Mubadala Energy enriched the technical discussion by providing real-world perspectives on drilling fluid management and the practical challenges encountered in the field. Participants engaged actively throughout the session, demonstrating strong enthusiasm for bridging academic understanding with industry experience. With an experienced guest speaker and the ability to address the curiosity of SPE members and participants regarding the upstream oil and gas industry, this event—organized by the Division of Science Course under the Department of Academia has set a new standard for SPE ITS guest lecture sessions. SPE ITS expressed confidence that events like the Upstream Series 2025 will continue to inspire young engineers and strengthen Indonesia’s contribution to global energy development.  Writer: Christya Amanda

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

Indonesia's energy landscape received a significant lift as Pertamina Hulu Mahakam (PHM) launched Platform WPN-7, boosting gas production by 20 million standard cubic feet per day (MMSCFD) in the Mahakam Block. This achievement underscores ongoing efforts to secure national gas supplies amid rising demands.Located offshore in East Kalimantan's mature Sisi Nubi field, WPN-7 went operational on March 23, 2026. It features two key wells: NB-701, which began flowing at 9.8 MMSCFD on March 25, and NB-702, achieving 12.5 MMSCFD by March 26. Together, they target a combined initial output of 20 MMSCFD, with PHM actively monitoring to stabilize and optimize performance in line with Q1 2026 objectives.This platform represents the third in the Sisi Nubi Area of Interest (SNB AOI) 1-3-5 project. Predecessors include WPS-4, activated December 4, 2025, and WPS-5 on February 23, 2026. These phased developments build on rigorous technical groundwork, revitalizing output from the longstanding Mahakam Block, a cornerstone of Indonesia's upstream sector.The boost aligns with broader national strategies, enhancing energy resilience. PHM's initiatives complement prior Mahakam projects that added substantial capacities, like up to 36 MMSCFD, supporting SKK Migas targets for oil and gas stability."These new wells play a vital role in ensuring steady gas availability and strengthening our upstream self-sufficiency goals," said PHM General Manager Setyo. As Indonesia navigates energy transitions, such milestones from mature fields like Mahakam remain crucial for economic and supply security into 2026 and beyond. Written by: Christya