Chinese companies have been increasingly investing in oil and gas through working visits to Indonesia by a number of Chinese companies since last May.
Sinopec, a state-owned Chinese company, is currently collaborating with Indonesia’s State-owned oil and gas company Pertamina on technology to increase oil and gas production in five locations including Rantau, Tanjung, Pamusian, Jirak, and Zulu.
Dadan Kusdiana, Acting Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM), said that Sinopec is targeting to launch a technical team to the Field in late August or early September 2024.
“This collaboration carries the Operational Cooperation (KSO) mechanism. The main technology is chemical enhanced oil recovery (EOR) with a special formulation that is efficient and cost effective,” Dadan said on Tuesday, August 6, 2024.
Meanwhile, other companies such as China National Petroleum Corporation (CNCPC) or Petrochina are focusing on oil and gas exploration in Eastern Indonesia, such as Buton and Timor, and some are participating in the ongoing oil and gas block auction.
“Buton is indicated as a heavy and thick hydrocarbon, so technology is needed to lift the oil. Here, there is Petrochina which does have experience in lifting heavy oils,” Arifin said on August 2, 2024.
According to Arifin, his visit to China last May was to see the potential for cooperation with a Chinese company that has experience in the field of oil technology.
“China does have the ability to be able to lift recovery above 50 percent. So we are currently combining with Pertamina so that we can lift production, from this we hope there will be a mine for lifting,” he said.
Regarding the participation of Chinese companies in two exploration locations in Eastern Indonesia, the Ministry of Energy and Mineral Resources said that Petrochina and Sinopec had entered the joint study stage.
“The two areas have been designated as joint study areas in June 2024. After the joint study is completed, the next step is direct offering of oil and gas work areas (WK), determination of WK winners and oil and gas exploration,” Ariana Soemanto, Director of Upstream Oil and Gas Business Development at ESDM ministry, said.
In addition, the ESDM ministry this year has also auctioned five oil and gas blocks offered at the 2024 Indonesia Petroleum Association (IPA) in May 2024. A number of participants came from China.
“It will be announced in due course. This joint study and auction of oil and gas blocks is part of a strategy for the discovery of oil and gas reserves,” he said.
