Kuwait Foreign Petroleum Exploration Company (KUFPEC) is looking at more oil and gas opportunities in Indonesia's Natuna Sea, its country representative said on Monday, with Indonesian President Prabowo Subianto looking to boost the country's production.
Prabowo, who took office in October, aims to ease dependence on imported fuel and plans to offer dozens of new oil and gas blocks to investors in coming years.
KUFPEC already has operations in the Natuna Sea with a participating interest in Natuna Block A, which supplies gas to Singapore, and the Anambas Block, for which it is in the process of securing development approval.
"We are particularly focused on potential blocks in the Natuna Sea region, which aligns with our ongoing efforts to develop the Anambas Block," Sara Al-Baker, KUFPEC's Indonesian country manager, told Reuters in an interview on Monday.
KUFPEC is conducting a study on Natuna D-Alpha gas block, she said, and planning to participate in the government's future block offerings.
Natuna D-Alpha has an estimated 230 trillion cubic feet of gas resources, one of the biggest resources in the world, but has high carbon dioxide (CO2) content.
"At this stage, we are conducting a joint study and conducting our evaluation, it will depend on the result," Al-Baker said. "I think it is a very strategic project for Indonesia. The main challenge is the high CO2."
KUFPEC is also part of two separate consortia that have signed contracts this year to explore the Melati and Amanah blocks.
Al-Baker said the Indonesian government has shown a commitment to offering more attractive contract terms for companies, including by allowing them to choose between the traditional cost recovery model or a gross split scheme.
Recent large gas discoveries in the South Andaman and offshore Kalimantan have also generated excitement for investors, she said.
"This combination of untapped potential and supportive government initiatives strengthens Indonesia's position as a prominent destination for oil and gas exploration," she said.
Once a member of OPEC, Indonesia is now a net importer of oil due to ageing wells and lack of investment, as projects have been hindered by red tape and competition for funding, including from renewables.
(Reuters - Reporting by Fransiska Nangoy; Editing by Sonali Paul)