Pertamina to Develop Indonesia's First Unconventional Oil and Gas Field

PT Pertamina Hulu Rokan (PHR) is pushing forward with the development of unconventional oil and gas wells, a first for Indonesia. The company is currently working on the Gulamo DET-1 and Kelok DET-1 wells in the Rokan Block. PHR President Director Muhammad Arifin explained that the company is preparing the stages to process oil reserves that have been difficult to extract, describing the development as a breakthrough to meet domestic energy needs. “In Rokan, we are entering a new business in a newly discovered reservoir we call unconventional oil and gas. This will be the first in Indonesia to be developed to sustain national energy needs,” he said. According to company records, the discovery amounts to nearly 740 million barrels of oil equivalent, making it one of the largest oil field discoveries in Indonesia in the last 10 years. Unlike conventional wells where oil flows freely upon drilling, unconventional development requires multi-stage fracturing technology to penetrate rock formations and release the sticky oil. The company is currently finalising a new production sharing contract with the government to begin the next drilling phase. Arifin expects approval in July, allowing the first appraisal well drilling to commence in December 2026. If all technology trials succeed, the unconventional reserves are projected to produce up to 50,000 barrels of oil per day at peak production. The Ministry of Energy and Mineral Resources is targeting the near-term implementation of unconventional oil and gas development to reduce import dependency. Deputy Minister Yuliot Tanjung stated that the government and the Special Task Force for Upstream Oil and Gas Business Activities are accelerating the regulatory framework to support this initiative.