During Indonesian President Prabowo Subianto’s visit to Saudi Arabia this week, the two countries inked preliminary agreements for investments totalling $27 billion in oil, petrochemicals, and alternative energy. Crown Prince Mohammed bin Salman received the president.
The entire amount of investment being talked about is similar to the $31.5 billion worth of commerce between the two nations during the last five years. A low-carbon energy project involving Saudi ACWA Power, Indonesia’s sovereign wealth fund Danantara, and state oil company Pertamina is one of the transactions being talked about.
Danantara added that the amount of money being talked about for the investment was $10 billion.
Saudi Arabia has been working with nations that use a lot of oil to make sure that there is a steady market for its most important product. The Saudis are presently in negotiations with India, which is another Asian country, about building a new refinery. China is one of these countries. Last November, Aramco and Sinopec started building their $10 billion refinery together.
Indonesia, on the other hand, has been trying to increase its oil and gas production to make up for a drop in output that has been going on for years. As part of their attempts to change the country from a net exporter of oil to a net importer, it gave five oil and gas blocks to multinational companies earlier this year.
The nation is now producing around 600,000 barrels of crude oil a day, but it intends to increase that to 1 million bpd by 2030. To do this, it plans to explore new areas and revive production at existing wells. To that aim, Indonesia is asking oilfield service companies with the ability to transform inactive wells back into productive ones to work with local businesses. The administration also wants to provide 74 more oil and gas blocks to developers that may be interested.
