Exploration & Production

Lack of partners raises upstream risk for Pertamina

Indonesia’s NOC needs to boost its production, but the country’s regulatory regime is putting off potential partners Indonesia’s NOC needs to boost its production, but the country’s regulatory regime is putting off potential partners.
By Damon Evans 19 November 2018 0 33347
A rig in the Mahakam Block. (SKKMigas)

Pertamina needs to partner with IOCs to expand Indonesia’s domestic production, but the country’s poor fiscal terms and lack of transparency continue to deter potential upstream investors.   

The NOC has a bold capital spending plan that will see it invest $18 billion by 2020, more than half of which will go towards expanding domestic production. However, Pertamina will become increasingly exposed to higher risk as it acquires more legacy assets. This could be mitigated by partnering with IOCs, but potential upstream suitors...