Indonesia Eyes Guyana and Suriname Oil Investments for Energy Security

Indonesia's national energy company, Pertamina, is exploring upstream investments in Guyana and Suriname to expand Indonesia's oil and gas supply and enhance energy security, according to the Indonesian government. Grata Endah Werdaningtyas, Director General for American and European Affairs at Indonesia's Foreign Ministry, announced this during a news conference.

Pertamina has already begun exploratory discussions with both nations to cooperate in exploration and investment in the upstream oil and gas sectors. The Indonesian government believes that acquiring minority equity stakes in upstream projects in Guyana and Suriname would reduce the country's reliance on Middle East imports, as these regions are expected to become South America's major oil growth drivers.

While Indonesia is an oil and gas producer, its domestic output falls short of meeting the rapidly growing demand, with the country currently producing around 600,000 barrels of crude oil per day, whereas consumption exceeds 1.6 million bpd. Indonesia's crude oil imports have historically originated from the Middle East, but geopolitical tensions such as the Iran war and the Strait of Hormuz disruption have prompted the country to seek alternative sources, including Russia.

In June, Indonesia welcomed its first shipment of Russian crude oil following a deal signed in April with Moscow. In South America, Guyana's oil production has surged in recent years, with an Exxon-led consortium producing 900,000 bpd from the offshore Stabroek block. Suriname, which shares offshore geological properties with Guyana, aims to become a prominent oil and gas producer in South America by the end of the decade.

Various offshore blocks, such as Block 58 where TotalEnergies is developing a $10.5-billion oil project, and GranMorgu, with first oil expected in 2028, are being explored and developed by consortia led by international firms, including Staatsolie's participation in Suriname.