BMI View: Falling production, slowing exploration interest and a maturing asset base - alongside rapid consumption growth - will increase Indonesia's dependency on crude oil and refined fuels imports over the coming years. The country's historical self-sufficiency in natural gas is expected to end by 2022.
Latest Updates And Key Forecasts
Indonesia has introduced a new production sharing contract (PSC) in hopes of generating greater interest in its underexplored oil and gas exploration blocks. While the new model significantly increases companies' take of profits from oil and gas sales, industry response has been lukewarm to date, because of the fact that it does not provide for any cost-recovery mechanisms.