Bahlil urges oil and gas firms to develop stalled Indonesian projects

Indonesia's Energy and Mineral Resources Minister Bahlil Lahadalia has urged oil and gas contractors to move ahead with stalled upstream projects, saying companies that have completed exploration and secured development-plan approval should begin developing their fields.

Speaking at FOREK Hulu Migas 2026, Bahlil said operators that could not advance their concessions into development or production must hand them back to the state. The government could then offer them to other companies, including Pertamina. He also suggested working with other companies to increase productivity and lifting.

Bahlil said national oil and gas output was declining naturally each year, with most domestic fields already mature. He put Indonesia's needs at around 1.5–1.6 million barrels per day, against domestic crude oil production of around 600,000 barrels per day.

He also instructed the Directorate General of Oil and Gas to speed up auctions and the signing of cooperation contracts for new blocks. According to Bahlil, there is potential for at least 118 new oil and gas blocks to be auctioned by the government.

The minister asked companies to report any underhand dealings involving auction registration, permits or cooperation contracts at the directorate. He said the process should be transparent and swift, with opportunities going to operators committed to carrying out the work.