Oil and gas exploration remains a key priority despite decarbonisation goals because gas is still necessary as a transition fuel, said speakers at the S&P Global Commodity Insights Appec conference in Singapore today.
France's TotalEnergies is still focusing on "high-impact exploration", putting in around $1bn/yr into exploration and appraisal, said the firm's vice-president of Asia-Pacific exploration and production, Karen Andries. "We're going to try to drill 15-20 exploration and appraisal wells per year."
Gas is important as a transition fuel because it is still required to displace other energy sources such as coal. Exploration hence needs to continue, "because this transition is going slower than we thought", said Andries.
TotalEnergies is expanding its presence in Malaysia and "we will continue to invest", said Andries. The firm fully acquired Malaysian private gas producer and operator SapuraOMV in 2024. It also acquired interests in multiple blocks offshore Malaysia and one block offshore Indonesia, from Malaysian state-owned energy firm Petronas, in June.
"We want to do more," said Andries, adding that some of TotalEnergies' exploration team in the Paris headquarters is moving to Kuala Lumpur, Malaysia. "This is an important step to show the region that we really want to do more, and not only in Malaysia, but Indonesia, Vietnam," Andries said.
The need to continue exploration efforts was echoed by Indonesian upstream regulator SKK Migas' deputy of exploration, development and working area management, Rikky Rahmat Firdaus.
"We are [experiencing] natural decline," he said, adding that Indonesia has an output of 600,000 b/d of oil production a day, but has a goal of doubling this by 2030, so drilling is necessary. Indonesia plans to drill 950 development wells and 46 exploration wells, with the chance of success expected at around 60pc, he said.
The country aims to offer 60 blocks over the next two years in its bidding rounds, to achieve its output targets, Rikky said. Indonesia has also introduced incentives for contractors and investors, such as a more attractive profit-sharing arrangement for working areas, to encourage participation.
