The Ministry of Energy and Mineral Resources is set to invigorate the nation’s energy sector by launching auctions for ten new oil and gas blocks. The launch is scheduled to take place during the upcoming Indonesian Petroleum Association Convention and Exhibition (IPA Convex), a premier event for the energy industry, slated for 22nd May to 23rd May 2026. These 10 new oil and gas blocks will be spread across key regions, including Sulawesi, Kalimantan, Papua, and Sumatra, as confirmed by Laode Sulaeman, Director General of Oil and Gas at Indonesia’s Ministry of Energy and Mineral Resources.
This initiative follows a thorough evaluation process. In February, the ministry had already identified 10 new oil and gas blocks after comprehensive in-depth studies were concluded by the Geological Agency and the Oil and Gas Testing Center (Lemigas). The specific locations earmarked for these auctions include Rupat, Puri, Karapan Baru, Pesut Mahakam, Bengara II, Maratua II, South Matindok, Lao-Lao, Rombebai, and Northern Papua/Jayapura. The government’s unwavering commitment to fostering an attractive climate for upstream investment is underscored by the introduction of several new fiscal policies.
To bolster upstream investment in Indonesia oil gas, the government is rolling out a series of attractive fiscal provisions. Contractors can anticipate an enhanced split, reaching up to 50 percent, a notable increase from the previous 15–30 percent range. Moreover, the government is introducing greater flexibility within oil and gas contracts. This includes offering contractors the choice between cost recovery and gross split contract models. Further incentives are in place, such as upstream incentives designed to optimize production, alongside exemptions from indirect taxes during the exploration phase. These measures are strategically designed to encourage participation and maximize the potential of these 10 new oil and gas blocks.
In parallel developments concerning the Tuna Block, Minister of Energy and Mineral Resources Bahlil Lahadalia provided an update on its progress. The engineering, procurement, and construction (EPC) process for this significant offshore project, situated in the North Natuna Sea, is slated to commence shortly. This landmark project is on track to begin production by 2028, following the planned exit of the independent UK oil company Harbour Energy in late 2025 due to international sanctions. Harbour Energy has already divested a portion of its stake to a national company.
The successful development of the Tuna Block and the launch of these new oil gas blocks at the IPA Convex event signal a proactive approach to developing the nation’s energy resources.
