Pertamina, Indonesia's national energy company, is exploring upstream investments in Guyana and Suriname to diversify the country's oil and gas resources and enhance energy security. Greta Indah Wardaniati, the Director General for American and European Affairs at Indonesia's Ministry of Foreign Affairs, announced at a press conference that the company has initiated exploratory talks for cooperation in exploration and investment in the upstream oil and gas sectors of these two countries.
Reducing Dependency on Oil Imports
Investing in upstream projects in Guyana and Suriname, which are recognized as growth drivers for oil in South America, could reduce Indonesia's dependency on imports from the Middle East. Greta Indah Wardaniati emphasized that "investment means we have a stake in the source, and therefore securing resources from that region will be safer for us." These statements reflect Indonesia's efforts to reduce reliance on imported crude oil from the Middle East, especially in light of rising tensions in the region.
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Oil Production Status in Indonesia
Indonesia is recognized as an oil and gas producer, but the country's domestic production is not sufficient to meet the growing demand for oil and gas. Currently, Indonesia's crude oil production reaches about 600,000 barrels per day, while the country's consumption is approximately 1.6 million barrels per day. As a result, the country is heavily reliant on crude oil imports, particularly from the Middle East. However, the war in Iran and disruptions in the Strait of Hormuz have forced Southeast Asia's largest economy to seek alternative supply sources, including from Russia.
This summer, Indonesia received its first shipment of Russian crude oil under an agreement that Southeast Asia's largest economy had made with Moscow in April. In South America, oil production in Guyana has significantly increased in recent years, and a consortium led by Exxon is currently producing 900,000 barrels of crude oil per day from the Stabroek offshore block. Suriname, which has similar geological features to its neighbor Guyana, aims to become a major oil and gas producer in South America by the end of this decade.
Several offshore blocks in Suriname are being explored and developed by consortiums that include international companies. For example, Block 58, where TotalEnergies is developing a $10.5 billion oil project called GranMorgu, is expected to produce its first oil in 2028.
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