JAKARTA: In a significant step towards bolstering its energy security, Indonesia's energy ministry announced on Wednesday the awarding of five oil and gas blocks to various companies. This move is part of a broader strategy to replenish the nation's dwindling oil and gas reserves and improve its overall energy landscape.

As the country grapples with a prolonged decline in production that has lasted over a decade, the Indonesian government is planning to offer nearly 60 additional oil and gas blocks in the coming years. This ambitious plan is aimed at reversing the ongoing downturn in output and ensuring a stable energy supply for the future.

Tri Winarno, a senior official at the Ministry of Energy and Mineral Resources, expressed optimism about the new auction winners, stating during an online broadcast that the government hopes these companies will significantly contribute to Indonesia's energy security moving forward.

The awarded blocks include both the Gaea and Gaea II blocks, located in West Papua, which have attracted a consortium of eight companies, including prominent players like Enquest Petroleum Production Malaysia Ltd, BP Exploration Indonesia Ltd, and CNOOC Southeast Asia Ltd. According to estimates provided by Tri, the Gaea block holds approximately 9.6 billion barrels of oil and a staggering 71.8 trillion cubic feet of gas. Meanwhile, the Gaea II block is estimated to contain about 8.5 billion barrels of oil and 35.1 trillion cubic feet of gas.

In addition to the Gaea blocks, the government awarded the Binaiya block situated offshore Maluku to state-owned PT Pertamina Hulu Energy, along with companies such as Malaysia's Petronas unit PC North Madura II Ltd and South Korea's SK Earthon Co Ltd. The Binaiya block is projected to have around 6.7 billion barrels of oil and 15 trillion cubic feet of gas potential.

Furthermore, the Sepang block located offshore East Java was awarded to a partnership that includes PC North Madura II Ltd, SK Earthon, and Japan's INPEX Corporation. The Kojo block in the Makassar Strait was handed over to Armada Etan Ltd, further diversifying the portfolio of companies involved in Indonesia's oil and gas exploration efforts.

Historically, Indonesia was a significant oil producer and even a member of the Organization of the Petroleum Exporting Countries (OPEC). However, in recent years, the nation has become increasingly reliant on energy imports. In light of this reliance, Indonesia has expressed its willingness to enhance energy imports from the United States, a topic that has emerged during ongoing tariff negotiations. This pivot underscores the country's urgent need to secure its energy future amidst changing global dynamics.