Rise in oil prices opens up opportunities for increased exploration

With the rise in oil prices, and if these prices sustain at a newly established level, this will open opportunities for exploration as well as exploitation in fields that may have been marginal until now.

Jakarta — PT Elnusa Tbk (Elnusa) says that if the rise in world oil prices continues over the long term, it could open opportunities to increase exploration and exploitation activities in marginal or remote fields.

‘With the rise in oil prices and if prices remain sustainable at a new level, this will open opportunities for carrying out explorations as well as exploitation in fields that until now may have been quite marginal,’ said Elnusa’s Chief Financial Officer Nelwin Aldriansyah at a breaking-of-fast event in Jakarta on Thursday.

Brent crude price (ICE) has reached USD 83 per barrel, higher than the January 2026 average Brent (ICE) price of USD 64 per barrel.

Nelwin explained that when crude prices are below USD 60 per barrel, upstream oil and gas players judge marginal oil fields not viable to develop.

‘Compared with countries in the Middle East, lifting costs for oil and gas in Indonesia are quite high. So, at (oil price) USD 60 per barrel, perhaps in the Middle East it remains economical, but in Indonesia, particularly offshore, it is not economical,’ he said.

Therefore, if current oil prices above USD 80 per barrel persist for a long time, Nelwin believes upstream players will be enthusiastic to undertake exploration and exploitation of oil and gas fields.

With increased exploration and exploitation activity, Nelwin projected that demand for seismic surveying services, drilling, and related activities will also rise.

Iranian media reported that the Strait of Hormuz has been ‘effectively’ closed following US-Israel attacks.

The Strait of Hormuz handles around one-fifth of global oil trade as well as a large volume of LNG exports from Qatar and the United Arab Emirates.

Around 20 percent of global daily oil consumption, or around 20 million barrels, passes through that corridor.