With elevated energy demand and good fiscal terms, the outlook for Indonesia is positive.

Production sharing contracts allows full cost recovery for exploration wells before reducing the company’s revenue share, so investment can be recovered even with modest production rates and a low oil price environment. Indonesia is one of South East Asia’s most energy hungry economies.  This makes oil and gas exploration projects  attractive.

Sumatra is particularly attractive because it has a large, well-connected infrastructure network and an energy-hungry population.

Indonesia – our community commitment

Our JV partnerships in Indonesia also make significant contributions to their local communities, often with a focus on improving local community health and education opportunities, and local infrastructure.


  • We work hard to ensure our values are reflected in the way we operate in our offshore activities.
  • We ask questions of our joint venture partners in Indonesia.
  • We take an active interest in the community engagement and community investment plans for each project we are involved with.  

Like exploration and production, community investment may take years to activate.
Community investment plans are developed following detailed local engagement including meeting with Kepala Desa (the local village head), and require final approval from the local Regency (local government). 

Through this engagement, affected communities’ social and environmental priorities are identified, such as providing clean water supplies to a village, or renovating local schools


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2015 Mahato PSC


2015 Mahakam Hilir PSC

Mahakam Hilir

Mahakam Hilir

2015 Mahakam Hilir PSC
60 % Cue Kalimantan Pte Ltd (Operator) (a Cue Energy company)* *
40 % Cue Mahakam Hilir Pty Ltd (a Cue Energy company)*

* New Zealand Oil & Gas has a 50.04% interest in Cue Energy

Early exploration
Further Evaluation

Project Status: Appraisal

Permit Overview

The Mahakam Hilir PSC covers an area of 344 square-kilometres in the prolific Kutei Basin onshore Kalimantan, Indonesia.

Cue has drilled two exploration wells in the PSC, the Naga Utara-1 well and the Naga Selatan-1 well in 2012. The joint venture drilled a third well the Naga Utara-2 well in 2013, to appraise the gas shows seen in Miocene-age sandstones at Naga Utara-1 which were not fully evaluated in the previous well due to mechanical problems.

Permit Activity

Technical work required for Naga Utara-4 appraisal well planning has been completed. Discussions are continuing with the Indonesian regulator for a variation to the work program to enable the deadline for the optional well commitment to be deferred to may 2019.