Market Size of Indonesia Oil and Gas Upstream Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 2.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Indonesia Oil & Gas Upstream Market Analysis
The Indonesian oil and gas upstream market is expected to witness a CAGR of around 2.5% during the forecast period. The COVID-19 pandemic had a severe impact on the upstream operations of the country. The demand and consumption of crude oil and natural gas dampened during the pandemic, which resulted in low scope for new upstream contracts in 2020. The Indonesian upstream oil and gas sector revenue in the first six months of 2020 was USD 11.89 billion, as per the records of the upstream regulator SKK Migas. The figures were below half of the government's full-year target of USD 32.09 billion. The Indonesian oil and gas upstream market is likely to grow in the coming years due to the high oil demand in the country, which is currently higher than the production level, along with increasing energy consumption in the country. However, the lack of government support for the participation of international companies is likely to restrain the market growth in the upcoming years.
The crude oil segment is expected to dominate the market during the forecast period due to government initiatives to boost oil production.
The depleting mature oil and gas fields create an opportunity for better avenues for exploration and production activities. The proved crude oil reserves stood at around 2.5 billion barrels in 2021, and the replacement rate for oil reserves dropped to 50% due to the lack of exploration activities in the recent past. Thus, the country urgently requires more E&P activities to meet the growing energy demand.
The growing penetration of renewables for energy supply is likely to be the toughest restraint for the market over the coming years.
