In a strategic move to bolster its dwindling energy reserves, Indonesia has awarded five oil and gas blocks to several domestic and international companies, the Ministry of Energy and Mineral Resources announced on Wednesday.
The awards are part of a broader government initiative aimed at reversing a decade-long decline in oil and gas production by offering nearly 60 blocks in the coming years.
“The government hopes these auction winners will contribute meaningfully to Indonesia’s energy security going forward,” said Tri Winarno, a senior ministry official, during an online broadcast of the awards ceremony.
Two of the awarded blocks, Gaea and Gaea II in West Papua, were granted to a consortium of eight companies. The group includes Enquest Petroleum Production Malaysia Ltd, BP Exploration Indonesia Ltd, and CNOOC Southeast Asia Ltd. According to Winarno, Gaea holds an estimated 9.6 billion barrels of oil or 71.8 trillion cubic feet (tcf) of gas, while Gaea II is believed to contain 8.5 billion barrels of oil or 35.1 tcf of gas.
The Binaiya block, located offshore in the Maluku region and estimated to hold 6.7 billion barrels of oil and 15 tcf of gas, was awarded to state-owned PT Pertamina Hulu Energy in partnership with Malaysia’s PC North Mandura II Ltd and South Korea’s SK Earthon Co Ltd.
In East Java, the Sepang block was granted to a consortium comprising PC North Mandura II Ltd, SK Earthon, and Japan’s INPEX Corporation.
Meanwhile, the Kojo block in the Makassar Strait was awarded to Armada Etan Ltd.
Once a prominent member of the Organization of the Petroleum Exporting Countries (OPEC), Indonesia has seen a steady decline in domestic oil output and has become increasingly reliant on energy imports. As part of recent trade negotiations, Indonesia has also proposed increasing energy imports from the United States.
The recent awards reflect the government’s effort to re-energize its fossil fuel sector and reduce dependency on foreign energy sources.