Market Size of Indonesia Oil and Gas Upstream Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 2.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Indonesia Oil & Gas Upstream Market Analysis
The Indonesian oil and gas upstream market is expected to witness a CAGR of around 2.5% during the forecast period. The COVID-19 pandemic had a severe impact on the upstream operations of the country. The demand and consumption of crude oil and natural gas dampened during the pandemic, which resulted in low scope for new upstream contracts in 2020. The Indonesian upstream oil and gas sector revenue in the first six months of 2020 was USD 11.89 billion, as per the records of the upstream regulator SKK Migas. The figures were below half of the government's full-year target of USD 32.09 billion. The Indonesian oil and gas upstream market is likely to grow in the coming years due to the high oil demand in the country, which is currently higher than the production level, along with increasing energy consumption in the country. However, the lack of government support for the participation of international companies is likely to restrain the market growth in the upcoming years.
The crude oil segment is expected to dominate the market during the forecast period due to government initiatives to boost oil production.
The depleting mature oil and gas fields create an opportunity for better avenues for exploration and production activities. The proved crude oil reserves stood at around 2.5 billion barrels in 2021, and the replacement rate for oil reserves dropped to 50% due to the lack of exploration activities in the recent past. Thus, the country urgently requires more E&P activities to meet the growing energy demand.
The growing penetration of renewables for energy supply is likely to be the toughest restraint for the market over the coming years.
Indonesia Oil & Gas Upstream Industry Segmentation
The Indonesian oil and gas upstream market report includes:
| Location of Deployment | |
| Onshore | |
| Offshore |
| Product | |
| Crude Oil | |
| Natural Gas | |
| Other Products |
Indonesia Oil and Gas Upstream Market Size Summary
The Indonesian oil and gas upstream market is poised for growth, driven by increasing domestic demand for crude oil and natural gas, which currently outpaces production levels. Despite the challenges posed by the COVID-19 pandemic, which significantly impacted upstream operations and led to a decline in new contracts, the market is expected to expand due to government initiatives aimed at boosting oil production. The crude oil segment is anticipated to dominate the market, supported by efforts to enhance exploration and production activities in depleting mature fields. However, the lack of government support for international companies' participation may hinder market growth. The country's energy consumption has been on the rise, with crude oil maintaining a significant share in the primary energy mix, although the growing penetration of renewable energy sources presents a potential challenge to the upstream sector's expansion.
The Indonesian government, alongside private sector initiatives, is actively working to increase renewable energy production, aiming to diversify the energy mix and reduce reliance on fossil fuels. Strategic partnerships and projects, such as those with the International Renewable Energy Agency and Toshiba Hydro Power, underscore the country's commitment to enhancing its renewable energy capacity. These developments, while beneficial for sustainability goals, could restrain the growth of the oil and gas upstream market. The market is moderately consolidated, with key players like Chevron Corporation, ExxonMobil Corp., and PT Pertamina Persero playing significant roles. Regulatory changes, such as those allowing flexibility in production sharing contracts, are expected to attract more investments in new offshore and onshore projects, further shaping the market landscape over the forecast period.
Indonesia Oil and Gas Upstream Market Size - Table of Contents
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1. MARKET OVERVIEW
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1.1 Introduction
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1.2 Indonesia Crude Oil Production and Forecast, till 2027
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1.3 Indonesia Natural Gas Production and Forecast, till 2027
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1.4 Recent Trends and Developments
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1.5 Government Policies and Regulations
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1.6 Market Dynamics
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1.6.1 Drivers
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1.6.2 Restraints
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1.7 Supply Chain Analysis
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1.8 PESTLE Analysis
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2. MARKET SEGMENTATION
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2.1 Location of Deployment
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2.1.1 Onshore
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2.1.2 Offshore
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2.2 Product
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2.2.1 Crude Oil
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2.2.2 Natural Gas
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2.2.3 Other Products
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Indonesia Oil and Gas Upstream Market Size FAQs
What is the current Indonesia Oil and Gas Upstream Market size?
The Indonesia Oil and Gas Upstream Market is projected to register a CAGR of greater than 2.5% during the forecast period (2024-2029)
Who are the key players in Indonesia Oil and Gas Upstream Market?
Chevron Corporation, Exxon Mobil Corp, Energi Mega Persada Tbk PT, CNOOC Ltd. and PT Pertamina Persero are the major companies operating in the Indonesia Oil and Gas Upstream Market.
