Indonesia has awarded five oil and gas blocks to various companies as part of its push to boost energy security and replenish declining reserves, the country’s Energy Ministry announced on Wednesday.
Over the next several years, the government plans to offer nearly 60 blocks in a bid to reverse a decade-long slide in oil and gas production.
“We hope these auction winners will support Indonesia’s energy security going forward,” said Tri Winarno, a senior official at the Energy and Mineral Resources Ministry, during an online broadcast reported by Reuters.
Two of the blocks—Gaea and Gaea II, located in West Papua—were awarded to a consortium of eight companies, including Enquest Petroleum Production Malaysia Ltd, BP Exploration Indonesia Ltd, and CNOOC Southeast Asia Ltd. According to Tri, the Gaea block contains an estimated 9.6 billion barrels of oil or 71.8 trillion cubic feet of gas, while Gaea II holds about 8.5 billion barrels of oil or 35.1 trillion cubic feet of gas.
The Binaiya block, located offshore in the Maluku region and estimated to hold 6.7 billion barrels of oil and 15 trillion cubic feet of gas, was awarded to state-owned PT Pertamina Hulu Energy in partnership with Malaysia’s PC North Madura II Ltd and South Korea’s SK Earthon Co Ltd.
The Sepang block offshore East Java went to PC North Madura 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 key oil exporter and a member of OPEC, Indonesia has become increasingly dependent on imported energy.
As part of broader trade talks, it has offered to expand energy imports from the United States in exchange for tariff concessions.
