Indonesia's upstream oil and gas sector back in favor with global players

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The Ministry of Energy and Mineral Resources (MEMR) has revealed that thanks to the government's creation of theMore competitive investmentsenvironment, a number of international oil and gas companies have renewed their interest in upstream oil and gas projects in Indonesia, and many companies that had withdrawn plan to return. The director general of the ministry's oil and gas directorate said the shift stemmed from the government'sRe-launching the cost-recovery Product Sharing Contract (PSC) modeland withParallel implementation of the gross revenue-sharing contractual modeland the accompanying incentives.Attractive fiscal termsPromoting the return of established businesses.

He noted that Indonesia remains an attractive location for global oil and gas investors.more attractiveexistingEni Group ItalyMalaysia, Petronas, PetroChina, Mubadala UAEand other multinational companies have expressed interest. The head of Indonesia's upstream oil and gas task force had also previously revealed that theAt least 25 companies interested in participating in Indonesia's oil and gas projectsThese includeChevron,Total EnergyShelland other industry giants.

He believes that the attention of international companies confirms the undiminished attractiveness of oil and gas investment in Indonesia, coupled with the country's stillSubstantial oil and gas resources to be developed, adding even more value to the investment. The upstream oil and gas task force is currently working throughOpen data, improve regional workdigitaland other initiatives to facilitate the evaluation of projects by investors, while at the same time, by virtue of theFlexible fiscal policies, strong support for approvals, and openness to yield-enhancing technologies(c) To further enhance the attractiveness of investment.

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