Related Articles
Report
Forward article link
Share PDF with colleagues

Indonesia treading water

The government wants higher oil production. The prospects are dim

Desperate to boost production for an energy-starved nation of 264m people but faced with a yawning capital expenditure gap, Indonesia is hoping that reluctant foreign investors will buy into 14 unexplored mainly offshore oil and gas blocks under a raft of financial incentives unveiled in April. In a belated recognition that Southeast Asia's biggest economy cannot fund its future energy needs, Indonesia will offer tax-free imports of drilling equipment and other upstream technology as well as revised "gross split" contracts that, the government argues, should help operators recover costs sooner. But foreign operators have been slow to show up at the party, citing excessive red tape, politic

Also in this section
US tight oil turning over a new leaf?
18 December 2017
A shale sector that emphasised returns over production growth would be a win from both shareholders and oil markets
Latest licensing rounds
13 December 2017
The industry's most comprehensive list of current and recent rounds for onshore and offshore licenses
East Mediterranean—a mixed bag
12 December 2017
While Egypt's gas output is set to soar, Cypriot and Israeli exports are being curtailed by regional politics and low prices. It's a mixed outlook for East Mediterranean gas