UK supermajor Shell is partnering with Kuwait's state-owned Kufpec to jointly study five exploration blocks in Indonesia, signaling a potential return to the country's upstream sector after previously exiting via the sale of its stake in the Masela block. The companies have entered into Joint Study Agreements (JSAs) for these assets, allowing them to evaluate oil and gas potential.

Strategic Benefits and Industry Context

Participating in a JSA provides companies with early technical insights and a strategic advantage, including preferential rights to the blocks when they are offered in future licensing rounds. Shell and Kufpec join a growing list of industry heavyweights that are engaging in or have recently completed similar JSAs for Indonesian acreage.

Regulatory Confirmation and Proposal Details

Djoko Siswanto, head of Indonesia's upstream regulator SKK Migas, confirmed that Shell submitted a proposal for joint studies in five working areas. The partnership is structured as a 50:50 venture between Shell and Kufpec. The proposal, submitted to the director general of oil and gas, covers two offshore and three onshore working areas located in West Sulawesi, West Nusa Tenggara, and Bali.

Government Evaluation Process

The Ministry of Energy and Mineral Resources is currently evaluating the proposal. Laode Sulaeman, the director general of oil and gas, stated that the submission will be discussed with the Minister of Energy and Mineral Resources, Bahlil Lahadalia, before any public announcement is made. This consultation aims to fully understand the objectives and opportunities of the joint studies. The Indonesian government had reportedly offered Shell more than five working areas, with the company expressing interest in this specific group of five assets.

This material is an AI-assisted summary based on publicly available sources and may contain inaccuracies. For the original and full details, please refer to the source link. Based on materials by Amanda Battersby. All rights to the original text and images remain with their respective rights holders.