JOGYAKARTA – The government of Indonesia has approved the first phase of plan of development (PoD) for 4 deepwater exploration fields which would be the main sources for gas in the future.

The government had signed 71 joint operation contracts for oil and gas exploration, 70% of exploration is located offshore, of which more than 50% is located at deepwater.

That 4 exploraion fields are Jambu Aye Utara, Gendalo & Gehem (IDD Project), Abadi, and Jangkrik (Muara Bakau block). Jambu Aye Utara field is targeted to produce this year and IDD Project (developed by Chevron Indonesia Company through 4 contracts – KK Ganal, Rapak, Makassar Strait and Muara Bakau) is expected to commence production in 2018.

Abadi field, developed by Inpex Masela Ltd, is expected to have proven resources of 6.05 TCF. While Jangkrik field is expected to produce next year.

To attract investors for developing oil and gas field at deepwater area, the government offers 35% profit sharing for investors for oil and 40% profit sharing for gas.