Publications

The Indonesian oil and gas industry has existed for more than 100 years, however the country is still attractive for more exploration by both local investors and international companies. New discoveries during the late 1990s, immediately nearshore of the North Makasar Straits, and in the Kutei Basin, as well as an improved economic climate, have sparked a new round of active interest among petroleum companies. This has encouraged the government to open the possibility of new contract areas in the East Java-Lombok Basin (EJLB) and Makasar Straits, particularly in the offshore Kutei and Western Sulawesi fold belt basinal portions.Extensive government and industry study of the Makasar and EJLB has renewed industry interest in the under-explored and frontier areas of Eastern Indonesia. This area is largely under-explored to nonexplored, and it is believed that in spite of a relatively high number of unsuccessful wells over the last 30 years, the area may still have considerable hydrocarbon potential. A creaming curve of East Java Basin may exemplify those potential remains.The main sedimentary basins within the Makasar Straits and Bali-Lombok Sea can be broadly divided into a number of separate “provinces, on the basis of petroleum geology and location.A number of play concepts have been identified, such as, Ngimbang carbonate and clastic plays over the Lombok Sub Basin, promising Eocene clastics and potential Late Oligocene carbonates plays in the South Makassar area. Viable source rock kitchens, with the capacity to generate sufficient hydrocarbons, as well as lateral migration represent one of the main challenges in this area. Exploration for deep-water sandstone reservoirs beneath deepwater Makasar Straits represents a major new frontier play in Eastern Indonesia.The following six exploration plays, in particular are anticipated to be the focus of future exploration activity: 1]. Late Oligocene carbonates play, 2]. Upper Miocene lowstand sand/Neogene turbidite related play, 3]. Miocene shelfal clastic and carbonate play, 4]. Paleogene sand and carbonate buildup play, 5]. Anticlinal drape over basement play, 6]. Inverted modifying structural play.Keywords: Upstream Oil and Gas, Investment Opportunity, Upside Potential, Deepwater, Frontier and under-explored basin, East Java- Lombok Basin, Makasar Strait