Global energy giants, including Chevron and Shell, are showing renewed interest in Indonesia’s upstream oil and gas sector, as the government intensifies efforts to attract foreign investment through fiscal reform and improved exploration data access.

According to Head of the Upstream Oil and Gas Regulatory Task Force (SKK Migas), Djoko Siswanto, several major players from the United States have been in recent discussions with the government, signaling a strong interest in re-engaging with high-potential blocks, particularly in Eastern Indonesia.

“Chevron is one of the companies exploring a return,” Djoko told reporters on Monday, July 21, 2025.

“They are reviewing large, already-discovered fields and have asked the government for open access to potential sites through SKK Migas,” Djoko added.

Djoko’s comments come amid reports that U.S. delegations have visited Indonesia for preliminary talks. French energy firm TotalEnergies is also reportedly considering a move to acquire the Bobara exploration block, which holds an estimated investment value of US$92 million.

Meanwhile, Deputy for Exploration, Development, and Working Area Management at SKK Migas, Rikky Rahmat Firdaus, said that Chevron’s activities have not been included in the official data on exploration repositioning, early-stage communication is ongoing.

Chevron has yet to formally register its exploration activities with Indonesia’s upstream oil and gas regulator, but discreet engagement and behind-the-scenes negotiations continue.

“Chevron prefers not to make a public splash at this stage. The communication must be handled very carefully to ensure the right tone and context,” Rikky told reporters.

He emphasized that dialogue among Oil Contractors (KKKS) remains active, especially for large-scale exploration projects that require significant investment and risk-sharing mechanisms.

“One good example is the Bobara project in Papua, valued at around US$92 million. It involves multiple parties under a shared-risk framework,” Rikky cited.

Chevron's cautious re-entry reflects a broader trend among international oil companies (IOCs), many of which are carefully evaluating Indonesia’s evolving upstream environment following recent reforms.

These include more flexible production sharing terms, enhanced data access, and fiscal incentives aimed at reducing barriers to entry and encouraging long-term investment.

British oil and gas giant, bp, has also resumed seismic activity in the Agung 1 and Agung 2 blocks in the North Sea region of Indonesia. “They’ve already carried out seismic surveys this year, but there’s interest in extending further into deeper offshore areas,” Rikky said.

The focus on eastern Indonesia reflects a strategic pivot by both the government and investors, who view these relatively underexplored regions as the next frontier for major discoveries. “Most of the blocks with significant potential are in the East. The western areas are already saturated,” Djoko noted.

To support this momentum, the government has implemented reforms aimed at improving investor confidence. These include more flexible production-sharing contract (PSC) terms, streamlined permitting, elimination of VAT on LNG, and significant investment in infrastructure and data transparency.

These developments mark a significant shift in Indonesia’s upstream landscape, signaling the return of major international oil companies after years of subdued activity due to regulatory hurdles and market volatility.

“We’ve made upstream data more accessible and aligned our regulations with international standards. The goal is to boost production and bring in technologies that can increase our output,” Djoko said.

SKK Migas projects that Indonesia will offer up to 60 new oil and gas blocks for exploration between 2025 and 2027. This is part of a long-term strategy to reverse declining domestic production and reduce reliance on energy imports.