Indonesian upstream regulator SKK Migas has asked Shell to complete the divestment process for its Masela Block, which holds the giant Abadi gas field, by the end of this year, reported local media. Chevron is also being pushed to finalise the sale of its Indonesian Deepwater Development (IDD) to Italy’s Eni.
The Indonesian government forecasts that 616 new development wells will be drilled across the archipelago this year following a strong rebound in global crude prices.
SKK Migas, Indonesia’s upstream regulator, expects Eni to takeover Chevron’s giant Indonesia Deepwater Development (IDD) during the first quarter 2021. If the move comes to pass, expect other potential buyers, that could include Pertamina, Sinopec, Neptune Energy and Saka Energi, to be in the new IDD mix.
Indonesia is taking proactive steps in a bid to avoid a sharp drop in upstream production as state-backed Pertamina takes over more legacy assets from international oil companies (IOCs).