Analyst Says Bali’s New Energy Project Will Benefit the Community
Two global energy companies, BP and Inpex Corporation, have officially taken equal 50 per cent participating interests in the Agung I and Agung II deep-water oil and gas exploration blocks in waters off Bali.
The strategic move, carrying an investment commitment of US$42.7 million, was announced by the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), following an Energy and Mineral Resources Ministerial Decree dated 7 September 2026.
Yayan Satyakti, an energy economist at Padjadjaran University (Unpad), said the arrival of the two global companies was a positive signal, showing that Indonesia’s upstream oil and gas sector remained attractive to foreign investors.
“Companies of this size choose areas carefully because their exploration budgets are contested by dozens of countries. They are also coming to a frontier area,” Yayan told reporters on Wednesday, 21 October.
As an initial step, the BP-Inpex consortium has scheduled a 285-kilometre 2D seismic survey and a 3,650-square-kilometre 3D seismic survey to map potential gas reserves offshore Bali.
Both companies have substantial track records in Indonesia’s energy sector. SKK Migas data for January to July 2026 show that BP Berau supplied around 28 per cent of the country’s total gas distribution through its Tangguh LNG facility. Inpex, meanwhile, is the main operator developing the Abadi Project in the Masela Block.
Yayan added that the involvement of these experienced companies was strategically important to support the project’s smooth implementation and safeguard the roadmap for national energy security in the future.
Beyond its impact on the national energy sector, a potential gas discovery off Bali could deliver tangible benefits to the region, including revenue from the Revenue Sharing Fund (DBH) and support for local electricity supply independence during the energy transition. The Island of the Gods currently relies on an undersea cable from Java for 270–340 megawatts of electricity.
SKK Migas chief Djoko Siswanto previously said Bali Governor I Wayan Koster had expressed support for exploration and exploitation activities in the Agung I and Agung II blocks. SKK Migas is optimistic that the collaboration can develop Bali’s offshore oil and gas potential safely, effectively and sustainably.