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
Latest licensing rounds
20 July 2018
The industry's most comprehensive list of current and recent rounds for onshore and offshore licenses
Targeting frontier areas in the North Sea
19 July 2018
Latest license round set to unlock stranded reserves
Extending the life of the North Sea
19 July 2018
Oil and gas production is likely to sag in the coming years, but the industry won’t go without a fight