Buton Offshore Area Holds Oil Potential of 5 Billion Barrels

Oil and Gas Blocks
Oil and Gas Blocks

In a groundbreaking discovery, Indonesia, known for its vast natural resources, has revealed a significant oil potential in the Buton offshore area, located in the Southeast Sulawesi Province. This newly discovered potential is estimated to be as massive as 5 billion barrels.

Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif, has urged Pertamina, the state-owned oil and gas company, to swiftly develop this area. The aim is to tap into this immense oil reservoir and contribute to the country’s overall oil production.

Arifin Tasrif highlighted that Pertamina’s seismic surveys conducted in the Buton offshore area revealed substantial oil reserves awaiting development. He emphasized the urgency of accelerating the development process to capitalize on this valuable resource.

“Pertamina conducted seismic surveys in the Buton area in early 2019-2020. The results indicate a significant potential of 5 billion barrels of oil. We must expedite the development process to harness this potential,” stated Arifin Tasrif at the ESDM Directorate General of Oil and Gas office.

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Acknowledging the time-consuming nature of oil exploration and production processes, Arifin Tasrif assured that the government is committed to ensuring the prompt commencement of projects in the Buton area.

Furthermore, alongside the pursuit of new discoveries, the government is actively promoting the optimization of oil production from existing fields. Initiatives include drilling activities in the Banyuurip Field in Cepu and non-conventional oil sources in the Rokan Block.

Additionally, the government is focusing on boosting natural gas production, with projects such as the development of the Masela Block offshore Maluku and tapping into giant gas reserves in the Kutai Basin.

SKK Migas, the Special Task Force for Upstream Oil and Gas Business Activities, disclosed the vast potential of Indonesia’s oil reserves in the eastern regions. Head of SKK Migas, Dwi Soetjipto, emphasized the significant reserves present in various oil blocks, including areas in Timor, Buton, Warin, Seram Islands, and Aru Islands.

“The total reserves in these areas are estimated at 9.7 billion barrels. This presents a considerable opportunity for investors, potentially tripling the current reserve position,” stated Dwi Soetjipto during an interview with CNBC Indonesia.

This monumental discovery underscores Indonesia’s commitment to harnessing its natural resources to drive economic growth and energy security. With strategic planning and development efforts, Indonesia aims to unlock its full potential as a key player in the global energy landscape.