Hormuz Strait Heats Up, Indonesian Oil and Gas Issuers Spell Out Impacts

Jakarta, CNBC Indonesia — Oil and gas services company PT Elnusa Tbk (ELSA) believes a rise in global oil prices could open opportunities to increase upstream activity in Indonesia, which would in turn lift demand for oilfield support services. Current geopolitical developments threaten to affect global energy supplies, driven by tensions in the Middle East involving the global oil distribution route through the Hormuz Strait. About 20% of global oil supply passes through this route. Iran has closed the Hormuz Strait following attacks by the US and Israel. Elnusa’s Chief Financial Officer Nelwin Aldriansyah explained that higher oil prices could make some fields previously uneconomical to produce viable, particularly fields with relatively high production costs in Indonesia. ‘With higher oil prices, and if this price level becomes sustainable at the new level, it will create opportunities for exploration and exploitation in fields that may have been marginal for upstream partners,’ Nelwin said at a media briefing in Jakarta on Thursday, 5 March 2026. The anticipated uptick in upstream activity is expected to raise demand for various oil and gas industry support services, including drilling and surveys. ‘Therefore our hope is that if exploration and exploitation activities increase, with higher oil prices there will be a need for services such as drilling and seismic surveys, which will positively impact Elnusa’s operations and possibly those of some subsidiaries,’ he added. Nelwin suggested that these conditions could push the government to accelerate domestic oil production to reduce import dependence, noting that national fuel stockpiles are only sufficient for about 20-23 days. ‘Thus our dependence on crude imports from Indonesia could be somewhat replaced by higher domestic lifting, and this would positively affect Elnusa’s activities in upstream and services across Indonesia,’ he said. (mkh/mkh) Add as a preferred source on Google [Gambas:Video CNBC]