Jakarta-The Indonesian government is preparing to offer 10 new oil and gas working areas during the upcoming IPA Convex 2026, a move expected to attract strong attention from global energy investors and upstream petroleum companies. The plan reflects Indonesia’s broader strategy to strengthen national energy security while boosting foreign direct investment in the oil and gas sector.
According to the Ministry of Energy and Mineral Resources, the new exploration blocks are located across several resource-rich regions including Sumatra, Kalimantan, Sulawesi, and Papua. These areas have undergone geological studies and technical evaluations, making them ready for commercial bidding and future exploration activities.
Director General of Oil and Gas Laode Sulaeman stated that the government is introducing more competitive investment policies to improve Indonesia’s attractiveness in the global energy market. The administration hopes the new incentives will encourage international oil companies to expand operations in Southeast Asia’s largest economy.
One of the most notable incentives is the revised production-sharing scheme that offers contractors up to a 50 percent split, significantly higher than previous arrangements. Authorities believe the improved fiscal terms will help accelerate exploration and increase long-term production capacity.
Indonesia is also providing greater flexibility in upstream contracts by allowing companies to choose between cost recovery and gross split mechanisms. Additional incentives include indirect tax exemptions during exploration periods and support programs aimed at optimizing oil and gas production efficiency.
Energy and Mineral Resources Minister Bahlil Lahadalia also confirmed that development of the Tuna Block in the North Natuna Sea will continue despite the withdrawal of UK-based Harbour Energy due to international sanctions. The government views the offshore project as strategically important for Indonesia’s future gas supply.
The engineering, procurement, and construction phase for the Tuna Block is expected to begin soon, with production targeted to start in 2028 or no later than 2029. Officials believe the project could play a major role in supporting domestic energy demand while reducing dependence on imported energy resources.
The upcoming auction at IPA Convex 2026 is expected to become one of the most closely watched energy investment events in the region. With global demand for oil and gas still remaining high, Indonesia is positioning itself as a competitive destination for upstream energy investment and long-term resource development.
FAQ
What is IPA Convex 2026?
IPA Convex is Indonesia’s largest oil and gas convention and exhibition, bringing together global investors, energy companies, and industry stakeholders.
How many oil and gas blocks will Indonesia auction?
Indonesia plans to auction 10 new oil and gas working areas during IPA Convex 2026.
Where are the new oil and gas blocks located?
The blocks are located in Sumatra, Kalimantan, Sulawesi, Papua, and other high-potential regions.
What incentives are offered to investors?
The government offers higher production-sharing schemes, flexible contract systems, and tax incentives during exploration.
When is the Tuna Block expected to begin production?
The Tuna Block is targeted to start production in 2028 or no later than 2029
