Energy company PT Raharja Energi Cepu (RATU) is anticipating a possible decline in output from its core asset ‒ the Cepu Block ‒ but remains confident that production and revenue will stay robust through 2027–2028 amidst ongoing efforts to boost reserves and cash flow.

RATU’s President Director Sumantri acknowledged the company’s heavy dependence on Cepu Block, which the firm has rights to manage until 2035. In cooperation with operator ExxonMobil, RATU is pursuing various technical efforts to maintain ‒ and even increase ‒ oil and gas production.

Sumantri noted that as of September 2025, oil output from Cepu Block rose by about 7,000 barrels per day. For next year, production is projected at 140,000–150,000 barrels per day, exceeding earlier reserve estimates.

“In fact, reserves have long surpassed initial estimates ‒ from around 450 million barrels to over 600 million barrels produced,” Sumantri told a public virtual briefing on Wednesday, November 26, 2025.

That sustained output is crucial for RATU’s financial health, especially as the company braces for the post-2026 period. Based on current forecasts, Cepu Block remains promising until at least 2027–2028.

Expansion, new asset acquisitions

Though RATU remains focused on Cepu Block, the company is also pursuing selective growth opportunities. Sumantri said RATU is avoiding solo exploration projects for now. Instead, the company remains open to partnerships with larger players.

“If a major player invites us into exploration, we will evaluate the field quality and investment scheme carefully,” he said.

RATU aims to keep its cash flow strong over the next 3–5 years. Only if liquidity remains solid ‒ for example, with US$100 million (Rp1.7 trillion) in cash ‒ would the firm allocate 5–10 percent to exploration investment.

Longer-term, RATU plans to transition from being a participating interest holder to becoming an independent upstream operator. To that end, the company already holds a 49 percent stake in an upstream vehicle, and is eyeing participation in additional blocks.

Sumantri revealed that RATU is in the final stages of acquiring new upstream oil and gas interests. Due to confidentiality agreements and pending government approvals, he declined to provide details. But he confirmed that RATU is actively bidding in several open tenders.

“Some asset tenders will be announced in 1–2 weeks. If RATU wins, we will inform the public,” Sumantri said.

The acquisition process is complex, and timelines may slip. While RATU had hoped to secure new assets by year’s end or early next year, the firm today only confirms that tenders remain ongoing ‒ with outcomes possibly delayed.

Meanwhile, Director Adrian Hartadi pointed out that RATU’s debt-to-equity ratio (DER) is about 39 percent, leaving room for additional financing of approximately US$194 million. Funding could come from bank loans or future bond issuance.

RATU is balancing short-term stability ‒ maintained by strong performance from Cepu Block ‒ with long-term growth ambitions that include expansion through acquisitions and possibly exploration.