Jakarta – The Indonesian government continues to intensify efforts to increase oil and gas production through a massive auction plan, according to a Ministry of Energy and Mineral Resources (MEMR) statement on Thursday, January 18. The move is part of a long-term strategy to achieve more realistic oil production targets amid global challenges.
“We are targeting that in 2027 all 60 working areas (oil and gas blocks) will have been auctioned off. This is a concrete step to increase national oil and gas reserves,” said Minister of Energy and Mineral Resources Bahlil Lahadalia during the inauguration of the Director General of Oil and Gas.
The government also adjusted the oil production target in line with this plan. Initially, Indonesia aimed to reach 1 million barrels per day (bpd) by 2030. However, the target was considered too optimistic. Bahlil revealed that the government is now focusing on a more realistic achievement in the range of 800-900 thousand bpd by 2029.
“With the existing conditions and potential, we are optimistic that oil production can reach at least 800,000 bpd by 2029. This is a more realistic figure, but it still requires great effort,” he explained.
Bahlil emphasised that one of the keys to achieving this target is a large investment in the upstream oil and gas sector. The government is committed to creating an attractive investment climate for industry players by revising regulations and accelerating licensing.
“Oil lifting requires large funds and high technology. We drill first. Find the reserves. Then, we talk about the results. Therefore, the government prioritises investment to increase national oil and gas reserves,” he said.
The 60 oil and gas block auction is a great opportunity for domestic and international investors. The working areas to be auctioned include areas with significant potential oil and gas reserves, both onshore and offshore.
“This tender process will also increase transparency and efficiency in national oil and gas management. We hope to attract quality investors with the technology and capacity to manage these resources optimally,” Bahlil said.
Amidst the ambition to increase production, the government also underlines the importance of environmental sustainability. Exploration and production efforts will be carried out in compliance with strict international standards in environmental impact management.
“This auction is not only about increasing production but also ensuring that the management is carried out responsibly, both for the community and the environment,” Bahlil concluded. (Hartatik)