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


Screen Shot 2019 01 14 at 2.39.53 PM


2015 Mahato PSC


2015 Mahakam Hilir PSC

Mahakam Hilir


2015 Mahato PSC
12.5 % Cue Energy *

* New Zealand Oil & Gas has a 50.04 per cent interest in Cue Energy.

Early exploration
Further Evaluation

Project Status: Further Evaluation

Permit Overview

The 5,600-square kilometer Mahato PSC is located in the Central Sumatra basin close to several producing oil fields. The Mahato PSC covers a highly prospective area, close to several large producing oil fields. Multiple appraisal and exploration opportunities have been mapped.

Permit Activity

The permit has a minimum work commitment of a well and 2D seismic acquisition by July 2018. The operator, Central Sumatra Energy, has advised Cue that all required permits have been received to enable the drilling of a well in the Petapahan area. Pending partner agreement and the signing of a JOA, a well could be drilled by the first quarter of 2018.