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


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45 % Medco Energi Sampang Pty Ltd (Operator)
40 % Singapore Petroleum Company
15 % Cue Energy *

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

Early exploration
Further Evaluation

Project Status: Producing

Permit Overview

The Sampang PSC is located in the Madura Straight offshore Madura Island in East Java, Indonesia and covers approximately 536 square-kilometres.

It is composed of two producing fields: Oyong oil and gas field and Wortel gas field. Gas produced from Oyong is transported via a 60 kilometre pipeline to the Grati Onshore Gas Facility and sold to PT Indonesia. Oil is piped to a Floating Storage and Offloading (FSO) vessel for storage and export.

Oil production from the Oyong field commenced in 2007, followed by gas production in 2009. The oil field is in natural decline and a programme of well interventions and recompletions is currently underway. The planned workovers are expected to increase Oyong oil production and extend field life for an additional one to two years until 2017. Wortel gas production commenced in 2012. Gas is transported through a 7 kilometre pipeline to the Oyong platform then piped to onshore facilities.

The Sampang joint venture is focused on extending field life until at least 2018 and evaluating the remaining exploration potential in the permit. The extension of the predominantly gas production from Oyon and Wortel fields and gas sales on long-term contracted prices protects against weak oil prices.

Permit Activity

A new gas field has been discovered at the Paus Biru-1 exploration well in the Sampang PSC approximately twenty seven kilometres east of the producing Oyong Gas Field.
The well was drilled in October and November 2018 as an exploration well to a total measured depth of 710 metres and intersected estimated net gas pay of 29 metres across the primary Mundu Limestone Globigerina reservoir target.
A plan of development with commercialisation through the existing Oyong facilities is being prepared for submission to the regulator for approval. The well is currently being plugged and abandoned as planned.



Read More about this Producing Asset here

Sampang News

Gas Discovery at Paus Biru Well-1

Posted on 12 December 2018

New Zealand Oil & Gas subsidiary, Cue Energy Resources, has made an announcement that a new gas field has been discovered at the Paus Biru-1 exploration well offshore East Java in the Madura Strait, Indonesia.

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Paus Biru-1 Testing Completed

Posted on 4 December 2018

New Zealand Oil & Gas subsidiary, Cue Energy Resources, has made an announcement that the Drill Stem Testing (DST) of the Paus Biru-1 exploration well, as announced on 13 November 2018, has been completed.

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Paus Biru Well Logging Update

Posted on 13 November 2018

New Zealand Oil & Gas subsidiary, Cue Energy Resources, has released an update of progress in the
Paus Biru-1 well in the Sampang PSC, Indonesia.

Read the full post