Over a quarter of Indonesia’s production sharing contracts (PSCs) are due to expire over the next five years and the current foreign operators, who have no legal right to a contract extension, are still in the dark as to whether or not they will be extended. As a result, investment in some of the country’s largest upstream assets is stalling. National oil company Pertamina is lobbying hard to take the fields back under the state umbrella, and with July’s presidential elections taking on an increasingly nationalistic tone with regards to the country’s hydrocarbons resources, the future of international companies in Indonesia appears uncertain. Gas Strategies considers the prospects for IOCs in the Southeast Asian nation.
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