SKK Migas: Shell Expresses Interest in Upstream Oil and Gas Projects in Indonesia

JAKARTA – Shell has expressed serious interest in returning to invest in Indonesia’s upstream oil and gas sector. The investment would primarily be directed towards developing upstream oil and gas activities in offshore areas.

Djoko Siswanto, Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), said the investment interest was conveyed directly by Shell’s head office management in a meeting with SKK Migas.

“PT Shell’s head office management expressed its very serious interest in returning to invest in Indonesia’s upstream oil and gas sector, particularly offshore,” Djoko said in a statement to Dunia Energi on Friday (21/8).

According to Djoko, during the meeting Shell’s management expressed hope for government support for the company’s investment plans. “They sent their respectful regards to the Minister and requested support from us,” Djoko said.

Shell’s interest in strengthening its investment in Indonesia’s upstream oil and gas sector is a positive signal amid the government’s efforts to increase national oil and gas exploration and production investment, including the development of offshore oil and gas potential.

SKK Migas continues to encourage increased upstream oil and gas investment through the provision of investment opportunities, acceleration of licensing processes, and strengthening coordination with stakeholders. These measures are aimed at increasing exploration activities and oil and gas field development to support national energy security.

The meeting between SKK Migas and Shell’s management also demonstrates that global oil and gas companies remain interested in Indonesia’s hydrocarbon resource potential, particularly in offshore areas.

Shell was last involved in an upstream oil and gas project in the country through the Abadi Masela project. However, the company decided to withdraw and relinquish its participating interest. Pertamina and Petronas ultimately purchased Shell’s participating interest in Masela.