Publications

The Ministry of Energy & Mineral Resources in Indonesia has awarded operatorship of around 14 additional producing blocks to the National Oil Company (NOC) Pertamina during 2017-18. This would increase the contribution in country production from Pertamina operated asset to more than 50% by 2022. The proposed plans by Pertamina to increase the production from these Production Sharing Contracts (PSCs) and the signature bonus were definitely a favourable bid for the ministry, however post the award of these blocks Pertamina also faces a major challenge of additional higher investments on these mature assets. This paper focuses on analysing the uncertainty and challenges in the Indonesia; production forecast, contribution of the existing discoveries and increased role of Pertamina in improving the production from existing PSCs. Indonesia; oil and gas production has been under decline from the peak of 2.3 MMboe/d in 2010 to current levels of 1.8 MMboe/d. Considering the delay in development of some major projects, and the growing domestic demand, it becomes even more crucial to increase the production or sustain the current decline rates from existing mature fields in the country. Irrespective of the challenges and risk involved, there is definitely a hope with Pertamina taking charge of things, its success recently on Sukowati field, and the expertise on development within Indonesia.