Indonesia strengthens partnership with Chinese companies in oil and gas industry

The Indonesian government is stepping up cooperation with Chinese companies to increase oil and gas production. This was announced by Ariana Soemanto, Director of business development in the field of oil and gas production.

The joint projects will involve the Directorate General of Oil and Gas of the Ministry of Energy and Mineral Resources (ESDM), the Special Task Force for Oil and Gas Exploration (SKK Migas) and PT Pertamina Hulu Energi, a subsidiary of the state oil and gas company Pertamina.

Chinese companies Sinopec and PetroChina are already operating at two of the five sites in eastern Indonesia. In June, the Buton and Timor sites were identified for joint research. Upon completion of the research, direct tenders for the development of oil and gas fields will be initiated.

At the Indonesian Petroleum Association (IPA) 2024 conference and exhibition in May, several Chinese companies participated in an auction for the sale of five oil and gas blocks, which is part of a strategy to find new oil and gas reserves.

Pertamina and Sinopec are collaborating to introduce technologies aimed at increasing production. The government is currently processing permits to access oil and gas data before companies sign a confidentiality agreement. As part of the agreement, Sinopec will send a technical team to five exploration sites to conduct research and technical assessment.