Shell plc is set to return to Indonesia’s upstream oil and gas sector through a joint study with Kuwait Foreign Petroleum Exploration Company (Kufpec), signaling renewed interest from major global energy firms in the country’s exploration potential.
Head of the Upstream Oil and Gas Regulatory Task Force (SKK Migas) Djoko Siswanto confirmed the move, saying Shell and Kufpec have agreed to a 50:50 joint study across several working areas (WKs) in Indonesia.
“Shell has already entered a joint study with Kufpec on a 50:50 basis. They have also submitted their proposal to the Directorate General of Oil and Gas,” Djoko said during a hearing at the House of Representatives (DPR) in Jakarta on Tuesday, November 11, 2025.
He added that the companies would conduct studies in five working areas − two offshore and three onshore − which are currently being evaluated by the Directorate General of Oil and Gas.
The development marks a potential comeback for Shell, which previously divested from several Indonesian projects, including its stake in the Masela Block. The move also reflects a broader trend of renewed engagement between the Indonesian government and international oil companies (IOCs) that had scaled back operations in recent years.
Earlier, the Ministry of Energy and Mineral Resources (ESDM) confirmed that several major global energy firms − Chevron, Shell, and TotalEnergies − have expressed fresh interest in investing in Indonesia’s upstream sector.
According to Nanang Abdul Manaf, Expert Staff to the Minister of Energy for Exploration and Upstream Production Enhancement, these companies have begun reaching out to SKK Migas this year to explore potential opportunities.
“They have started expressing interest and have been asking many questions to SKK Migas,” Nanang said on the sidelines of the IPA Convex 2025 in Banten on May 23, 2025.
Nanang, who formerly served as Deputy Head of SKK Migas, noted that the renewed interest stems from these companies’ pursuit of giant discoveries to enhance their global portfolios.
“Shell, Chevron, and TotalEnergies are global giants with vast portfolios across Africa, the Middle East, South America, and North America. If the prospects are small, they’ll lose out compared to other regions. That’s why they’re now seeking big potential discoveries,” he cited.
He added that such opportunities are most likely found in eastern Indonesia, an area considered a geological frontier with higher exploration risks due to limited data availability.
“The chance to find large reserves is usually in frontier or outer regions,” Nanang said.
Shell’s reentry, coupled with renewed engagement from other global energy players, could mark a turning point for Indonesia’s upstream sector as the government seeks to boost exploration and production to achieve its long-term energy targets.
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