Indonesia East Java exploration basin

The East Java Basin covers the north east side of Indonesia's Java Island and extends along the northern parts of the islands of Bali, Lombok and Sumbawa and their waters. Approximately 1 billion boe of oil and gas has been discovered in the basin. Future exploration drilling is expected to be limited to a well explored shallow water shelf area in the east of the basin. The low hydrocarbon volumes discovered over the 10-year period failed to create value. This is primarily due to the high cost environment of the last decade and the slow pace of commercialisation in Indonesia. Going forward, prospective resources are also forecast to be low. However, as costs have fallen over the current downturn, exploration in the basin is forecast to start creating value again.