Indonesia’s ageing oilfields prompt push for new basin exploration
PHE says operators are working on only 20 of Indonesia’s 128 basins, while new exploration could take 5 to 7 years to deliver oil.
PT Pertamina Hulu Energi (PHE) is urging investment in unexplored oil and gas basins to counter declining output from Indonesia’s ageing fields. Finance director Bayu Kusuma Dewanto said most of the country’s oil and gas fields were mature or approaching the end of production.
Speaking at a press conference for the 2026 Upstream Oil and Gas Economic Forum in Jakarta on 20 October, Bayu said national oil demand stood at 1.6 million barrels per day, compared with production of around 600,000 barrels per day. He identified exploration as the main way to help address that shortfall.
Upstream operators are working on 20 of Indonesia’s 128 basins, Bayu said, leaving much of the potential undeveloped. PHE and other upstream contractors are preparing approaches to develop previously untouched basins across the country.
Bayu said managing mature fields required sustained investment and close coordination across operations. New exploration also involved a long commitment: first oil would take 5 to 7 years, extending the period of risk.
He also pointed to faster development of large projects, including Abadi in the Masela block, with estimated investment of US$20 billion. Bayu called for support from SKK Migas, banks, investors and other stakeholders on land permits, business licences and financing, as well as tax and workforce matters.
