Southeast Asia will lead other regions in having the largest share of new deepwater gas and condensate developments taking a final investment decision (FID) between 2022 and 2025, research from Rystad Energy shows. Significantly, around $25 billion is expected to be spent on greenfield deepwater developments in the region from 2021-2025, up from $2 billion over the prior five-year term.
Shell’s (LSE:RDSA) attempt to divest its stake in the Abadi liquefied natural gas (LNG) project, proposed in the Masela Block offshore Indonesia, is likely to be further delayed as operator Inpex (TYO:1605) seeks approval for a revised plan of development (POD).
Hyundai Engineering & Construction and partner Saipem will provide front-end engineering and design (FEED) services for Pertamina’s TPPI Olefin Complex project in Indonesia. Samsung Engineering and partner Technip have also signed a FEED contract for the same project.
The Indonesian government estimates that $187 billion needs to be invested in its upstream sector to meet its 2030 oil and gas production targets of 1 million barrels per day of oil and 12 billion cubic feet per day of gas. However, this target seems ambitious with major investors seeking to exit Indonesia's oil and gas sector, unless the government can attract local conglomerates.
The start-up of BP’s (LON:BP) Tangguh liquefied natural gas (LNG) Train 3 project, which is under construction, has again been delayed due to the pandemic. It is now expected to start up at the end of 2022, reported Indonesian upstream regulator SKK Migas.
The Indonesian government estimates that total investment of up to $1,043 billion will be needed to develop new power plants fuelled by renewable energy to achieve its goal of carbon neutrality by 2060. The Southeast Asian nation is currently heavily reliant on coal for power generation.
Spain’s Repsol (BME:REP) is again delaying the drilling of the much anticipated Rencong-1X deep-water wildcat exploration well in the Andaman III Block in the North Sumatra basin offshore Indonesia.
Harbour Energy (LON:HBR) is targeting final investment approval to develop its Tuna Block offshore Indonesia in 1H 2023 with first production planned in 2026 following successful appraisal drilling in the Natuna Sea.
UK-listed Harbour Energy (LON:HBR) said it is on track to probe the deep waters of Indonesia’s North Sumatra basin in its Andaman II production-sharing contract (PSC) with drilling set to start around March-April 2022. Significantly, the company has already identified potential commercialisation paths with first gas eyed by 2026, as well as options for carbon capture and storage (CCS).
One worker was killed in an accident last Thursday at the Rokan Block in Indonesia, operated by national oil company Pertamina. A subsidiary of the NOC, Pertamina Hulu Rokan (PHR), is aggressively trying to boost output at Indonesia’s second-largest oil producing block after taking over from previous operator Chevron in August.
ConocoPhillips (NYSE:COP) will exit Indonesia after agreeing to sell its assets in the country to local independent Medco Energi (IDX:MEDC) for $1.355 billion. The move could be a blow to Indonesia’s image in the longer run as the nation tries to attract foreign investment, but analysts generally see the deal as positive.
UK-based Harbour Energy (LON:HBR) is driving forward with plans to commercialise discoveries at its Tuna Block offshore Indonesia following a successful appraisal drilling campaign after good flow rates were recorded.
China officially told the Indonesian government to stop appraisal drilling at Harbour Energy’s (LON:HBR) Tuna Block offshore Indonesia in maritime territory that both nations view as their own during a months-long standoff in the South China Sea, reported Reuters.
Indonesian independent Medco Energi is carrying out a study to assess the potential of applying carbon capture, utilisation and storage (CCUS) technology at its operating assets.
Tidal energy pioneer Nova Innovation has secured Innovate UK funding that could help deliver the first tidal turbine array in Indonesia.
PetroChina, which is owned by China National Petroleum Corporation (CNPC), has secured an extension of its contract for the Jabung Block in Indonesia for an additional 20 years through to 2043.
BP (LON: BP) today signed a memorandum of understanding (MoU) with upstream regulator SKK Migas for Indonesia’s first enhanced gas recovery (EGR) and carbon capture utilisation and storage (CCUS) development. The EGR and CCUS scheme will be implemented at BP’s Tangguh liquefied natural gas (LNG) project.
Next month Italy’s Eni (BIT:ENI) will attempt to fix technical glitches that have forced a partial shutdown of its Merakes deep-water field offshore Indonesia.
Harbour Energy (LON:HBR) and its Russian partner Zarubezhneft have successfully completed their appraisal drilling campaign at the Tuna Block in the Natuna Sea offshore Indonesia with positive results at both wells.
Inpex’s (TYO:1605) proposed Abadi liquefied natural gas (LNG) plant in the Masela Block offshore Indonesia, which has long struggled to gain traction, is looking increasingly unlikely to be developed, especially as another wave of US LNG projects looms large.
The Energy Transition Mechanism (ETM) Southeast Asia Partnership, which aims to accelerate the retirement of existing coal-fired power, is the first of its kind in Asia Pacific and aims to help fast-forward Southeast Asia’s clean energy transition.
ExxonMobil (NYSE:XOM) and Pertamina will together evaluate large-scale carbon capture and storage (CCS) opportunities in Indonesia.
Italy’s Eni (BIT:ENI) has shut down a well at its Merakes field in its East Sepinggan production-sharing contract (PSC) offshore East Kalimantan, Indonesia, due to subsurface problems. This has triggered a production loss of about 60 million cubic feet per day, according to Indonesian upstream regulator SKK Migas.
Indonesia needs up to $35 billion investment to build an electric vehicle (EV) ecosystem in the next five to ten years. This will place Indonesia in a key position in the global EV supply chain, according to Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Panjaitan.
Harbour Energy (LON:HBR) is seeking a platform supply vessel (PSV) to support its Andaman deep-water drilling programme offshore Indonesia.