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The Rise in Upstream Oil and Gas Investment Maintains Hopes for National Energy Security

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Jakarta – The government is preparing a number of steps to encourage investment in the upstream oil and gas (migas) sector by opening new work areas.

One of the prepared agendas is the Ministry of Energy and Mineral Resources’ (ESDM) plan to open an auction for 10 oil and gas working areas (WK) in the 2026 Indonesia Bid Round, which is aimed at expanding exploration activities and maintaining the sustainability of national oil and gas production.

The ten blocks prepared for auction include Puri, Rupat, South Matindok, Karapan Baru, Bengara II, Lao Lao, Pesut Mahakam, Maratua 2, South Mahakam, and Rombebai.

One of the blocks considered to have potential is the Rupat Block, located in the northern segment of the Central Sumatra Basin. According to a technical study prepared by the Directorate General of Oil and Gas (BBPMGB LEMIGAS) and the Geological Survey of the Central Geological Agency (BPS), the Rupat area encompasses land and sea areas extending to the Strait of Malacca, with a track record of exploration dating back to the 1940s.

The available subsurface data is considered quite strong, starting from checkshot data from around 15 wells, final well reports from around 11 wells, to the availability of biostratigraphic and geochemical data from several wells.

Furthermore, the Rupat area is supported by approximately 651 2D seismic lines acquired between the late 1960s and the 1980s. While some of this data is vintage and requires reprocessing, this presents an opportunity for reinterpretation using modern technology to improve the quality of hydrocarbon potential mapping.

On the other hand, SKK Migas noted an increase in investment interest, reflected in the surge in joint study applications.

Rikky Rahmat Firdaus, Deputy for Exploration, Development, and Management of Working Areas at the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), stated that this trend has increased significantly since early 2026.

“We’ve noted a massive increase in joint studies to ensure the chosen work areas align with our interests and the desired outcomes,” said Rikky.

Rikky added that a comprehensive data provision strategy is key to attracting investors.

“The figure continues to move from 65, 75, to 110. So we really want to attract potential investors to take part in the joint study,” he added.

With the opening of new work areas, more open data access, and increased interest from business actors, the 2026 Indonesia Bid Round is believed to be able to strengthen the national oil and gas exploration portfolio and maintain Indonesia’s long-term energy security.

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