Chevron Plans Indonesian Gas Block Acquisitions After 2023 Exit

Chevron Corporation is showing renewed interest in re-entering Indonesia's oil and gas sector, focusing on exploration blocks potentially holding around 15 trillion cubic feet of gas, particularly in Bali and other eastern regions. This move follows the company's 2023 exit from Indonesia after selling its stakes in the Indonesia Deepwater Development project, which faced delays due to facility design changes. Indonesia is actively seeking to reverse a decade-long decline in oil and gas production by offering numerous blocks, including recent tenders for the Gagah, Perkasa, and Lavender blocks, with attractive fiscal incentives to encourage investment. Chevron maintains ongoing engagement with Indonesia's upstream regulator SKK Migas, though it has not disclosed specific details of its evaluations. Wall Street analysts remain optimistic about Chevron's prospects, assigning it an "Outperform" rating and projecting an average price target reflecting potential upside. Overall, Chevron's potential re-entry aligns with Indonesia's strategic efforts to revitalize its energy sector and attract foreign investment.