Indonesia is a vast area that comprises a large archipelagic region of five main islands and 300 smaller islands groups. The archipelago is located between the Pacific and Indian oceans, and it bridges the Asian and Australian continents for a total area of approximately 9.8M km2, 80% which is offshore.
Indonesia is a major producer of oil and gas and was a member of OPEC from 1962 to 2008, where they withdrew after they became a net importer of oil. Currently, 90% of Indonesia’s cumulative oil and gas production has come from onshore fields but the offshore basins are largely under-explored and are basically a geologic continuation of the onshore producing areas displaying many of the same reservoirs and trap configurations.
Furthermore, many of Indonesia’s onshore fields are proximal to surface oil seeps and this association appears to continue offshore with numerous seafloor oil seeps recently mapped. To date, Niko Resources has working interests ranging from 20% to 100% in 22 offshore exploration blocks.