Key facts
- Pertamina is considering upstream investments in Guyana and Suriname.
- The goal is to diversify Indonesia's oil and gas supply and boost energy security.
- Indonesia's domestic oil production of 600,000 bpd is insufficient for its 1.6 million bpd consumption.
- Geopolitical events, including the Iran war and Strait of Hormuz disruptions, have prompted Indonesia to seek alternative supplies.
- Guyana's oil production is booming, with an Exxon-led consortium producing 900,000 bpd.
- Suriname aims to become a major oil and gas producer by the end of the decade, with TotalEnergies developing a project in Block 58.
Indonesia's state-owned energy company, Pertamina, is exploring potential upstream investments in Guyana and Suriname as part of a strategy to bolster the nation's energy security and diversify its oil and gas supply. The move comes as Indonesia faces challenges in meeting its growing domestic demand, which significantly outstrips its production capacity.
Grata Endah Werdaningtyas, Director General for American and European Affairs at Indonesia’s Foreign Ministry, stated that Pertamina has begun discussions regarding cooperation in exploration and investment in the upstream sectors of Guyana and Suriname. Acquiring minority equity stakes in these South American nations, which are emerging as significant oil producers, would reduce Indonesia's reliance on imports, primarily from the Middle East. The foreign ministry official emphasized that holding an ownership stake in the source of supply enhances security.
Indonesia currently produces approximately 600,000 barrels of crude oil per day but consumes around 1.6 million bpd. Historically, a substantial portion of its crude oil imports has originated from the Middle East. However, geopolitical events, including the conflict in Iran and disruptions in the Strait of Hormuz, have compelled Indonesia to seek alternative sources, including Russia, from which it received its first crude oil cargo this past summer.
In Guyana, an Exxon-led consortium is already producing 900,000 bpd from the offshore Stabroek block. Suriname, sharing geological similarities with Guyana, aims to become a major oil and gas producer by the end of the decade. International firms, including TotalEnergies, are involved in developing offshore blocks, such as Block 58, where a $10.5 billion oil project is underway with first oil anticipated in 2028.