Special Session: Having Unexplored Basins, Indonesia is Still a "Promising" Oil and Gas Prospect

Created at: 2019-09-06T13:40:24.885Z

The glory era for the Indonesian oil and gas industry is not over. Although the national oil production has continued to decline over the past decade, Indonesia's oil and gas potential is still prospective and promising. Proof of this can be seen in the large number of unexplored basins.

This was stated on September 6 during the 3rd day Special Session discussion with the theme "Exploration Going Forward: Indonesia's Prospective Basins”. The speakers included Head of Exploration Planning Division of SKK Migas Shinta Damayanti, Exploration Director of Pertamina Upstream Energy Abdul Mutalib Masdar, Southeast Asia Business Development Advisor of Mubadala Petroleum Damien Rudd, and Head of Global Exploration of New Ventures of Petronas Suhaileen Shahar.

In her presentation, Shinta Damayanti explained that Indonesia has many basins but currently only 19 basins are producing. The basins, said Shinta, originated from 128 sedimentary basins. Creaming curve analysis shows that the basins in western Indonesia are classified as mature, and are still showing a climbing trend.

"Creaming curve analysis shows that pre-tertiary play in frontier eastern Indonesia basins are still in an emerging stage," Shinta said, while adding that Indonesia still has 10 key prospective basins that have been identified by working collaboratively between the government and industry and that may hold a giant discovery.

SKK Migas, according to Shinta, is optimistic that Indonesia's oil production target of 1 million barrels per day can be achieved by 2030. SKK Migas has also compiled a road map to achieve this target, using a program of seismic surveys for the 2020-2024 period.

Abdul Mutalib Masdar concurred and stated that according to him, there are still many promising and undeveloped oil and gas areas in Indonesia, for example in North Sumatra, South Sumatra, East Java and Kutai.

"But we are still focused on the Tarakan basin as it has high potential and has more than 25 structures, mostly in deltaic play. This will be the new Mahakam for Indonesia," Abdul said, adding that PHE believes this basin can be developed well in collaboration with various parties.

Agreeing with Shinta and Abdul, Suhaileen Shahar added that Petronas saw many oil and gas regions in Indonesia that had not yet been cultivated. This formed the background for the company's decision to continue to make Indonesia an investment destination.

"At first we looked at Sumatra and East Java. Now the eastern part of Indonesia also looks interesting. This pushes us into eastern Indonesia. The Indonesian Basin is more complex. The opportunities are still there but there are challenges and that needs the right technology, for example modern imaging technology, especially for the deeper basins," Suhaileen said.