Unlocking Indonesia’s Hidden Energy Treasures: The Future of Oil and Gas Exploration

PetroChina International Jabung Ltd. (PCJL) has successfully completed the initial production test of the Gemah-81 development well in the Jabung Working Area, Jambi, marking another milestone for Indonesia’s upstream oil and gas sector. The drilling activity was conducted under the supervision of SKK Migas, the country’s upstream oil and gas regulator.Head of SKK Migas Djoko Siswanto confirmed the positive test results, highlighting the well’s strong production performance following completion on February 11, 2026.Based on well test analysis conducted at a 32/64-inch choke, Gemah-81 produced 4.8 million standard cubic feet per day (MMscfd) of gas at a wellhead pressure (WHP) of 1,080 psig, along with approximately 400 barrels per day (bpd) of condensate. The well targets three reservoirs, with the primary zone located at a depth interval of 7,259–7,281 feet measured depth (MD). The results indicate promising hydrocarbon potential within the Gemah field.To accelerate production, PetroChina plans to connect the well to the existing Gemah Station production facility within approximately two weeks. The tie-in will involve the installation of around 300 meters of pipeline, enabling the well to commence regular production promptly.Building on this success, the company is scheduled to drill two additional wells — Gemah-85 and NEB-85 ST — within the next month. SKK Migas expressed hope that these wells will deliver even higher production rates, further strengthening output from the Jabung Block.Looking ahead, PetroChina reaffirmed its commitment to expanding exploration activities and optimizing existing assets in the block through technology deployment, cost efficiency, and collaborative efforts, supporting sustained production growth in the years to come.

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

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

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