Shell plc is moving back into Indonesia’s upstream oil and gas sector through a joint study with Kuwait Foreign Petroleum Exploration Company (Kufpec), underscoring renewed interest among major international firms in the country’s exploration landscape.
The Head of SKK Migas, Djoko Siswanto, stated that both companies have committed to a 50:50 joint study across multiple working areas (WKs). He explained during a hearing at the House of Representatives (DPR) in Jakarta on 11 November 2025 that a formal proposal has already been delivered to the Directorate General of Oil and Gas.
Djoko added that the initiative covers five WKs—two offshore and three onshore—which are currently under review by the Directorate General.
Shell’s move follows earlier divestments, including its exit from the Masela Block, and aligns with Indonesia’s broader push to re-engage international oil companies after several years of reduced participation.
The Ministry of Energy and Mineral Resources (ESDM) earlier confirmed that Chevron, Shell, and TotalEnergies have initiated fresh discussions with SKK Migas this year regarding potential upstream opportunities. This trend was outlined by Nanang Abdul Manaf, Expert Staff to the Minister for Exploration and Upstream Production Enhancement.
Nanang, who previously served as Deputy Head of SKK Migas, noted during the IPA Convex 2025 event in Banten on 23 May 2025 that these companies are pursuing prospects with the scale necessary to strengthen their global portfolios and are looking for regions with potential for giant discoveries.
He highlighted that eastern Indonesia is regarded as a frontier region, where limited data availability increases exploration risks but also offers a greater likelihood of sizeable resource finds.
As Shell resumes its engagement and other major operators re-establish contact with the government, the development may mark a turning point for Indonesia’s upstream sector as the country seeks to boost exploration and production to meet its long-term energy targets.
