The Strategic Role of Enhanced Oil Recovery in Indonesia

Sustaining the Giant: The Strategic Role of Enhanced Oil Recovery in Indonesia

As of February 2026, Indonesia is at a pivotal moment in its energy history. Faced with a natural production decline from aging fields and a national oil lifting target of 610,000 to 620,000 barrels per day (bpd), the government and state-owned energy giant Pertamina have identified Enhanced Oil Recovery (EOR) as the primary weapon to defend national energy sovereignty.

I. The Strategic Imperative: Defying the Decline

Indonesia’s oil basins are legendary but mature. Fields like Minas and Duri have been producing for over half a century. In 2026, EOR is no longer a "future project"—it is the baseline for current operations.

• National Targets: The 2026 lifting target is a strategic buffer to reduce dependence on crude imports, which the recently upgraded Balikpapan refinery (now at 360,000 bpd) is increasingly ready to process.

• The "Brownfield" Opportunity: With primary and secondary recovery reaching their limits, EOR technologies are expected to unlock an incremental 12%–16% of the Original Oil in Place (OOIP) in major blocks.

II. Flagship Technologies in the Archipelago

Indonesia utilizes a diverse portfolio of EOR techniques tailored to the specific geology of its various islands.

1. Chemical EOR (CEOR) at the Minas Field

One of the most significant breakthroughs of 2026 is the full-scale commercial deployment of Chemical EOR in the Rokan Block.

• ASP Injection: A combination of Alkali, Surfactant, and Polymer (ASP) is injected into the reservoir. The alkali and surfactant reduce interfacial tension to "wash" the oil off the rocks, while the polymer thickens the water to push the oil more effectively.

• Scaling Up: Following success in Minas Area A, Pertamina Hulu Rokan (PHR) is expanding CEOR to Areas B, C, and D.

2. Steamflooding at the Duri Field

The Duri Field in Sumatra remains a global benchmark for Thermal EOR.

• Steam Injection: By injecting high-pressure steam, the viscosity of heavy crude is drastically reduced, allowing it to flow toward production wells. Duri has utilized this method since 1985 and remains one of the largest steamflood operations in the world in 2026.

3. $CO_2$-EOR and the Carbon Market

Aligning with Indonesia’s Net Zero 2060 goal, 2026 marks the activation of the Full-Scale National Carbon Market (expected by June).

• CCUS Integration: Captured $CO_2$ from industrial sources is being piloted for injection into mature reservoirs. This provides a dual benefit: increasing oil recovery through swelling and miscible displacement while permanently sequestering carbon to earn credits in the newly launched market.

III. Key Projects and Players (2026 Overview)

IV. Challenges and Economic Outlook

While the technical potential is vast, the "Indonesia EOR Roadmap 2026" faces several hurdles:

• Fiscal Incentives: The government is proposing enhanced fiscal terms to offset the high CAPEX of EOR projects, encouraging Production Sharing Contractors (PSCs) to commit.

• Infrastructure Upgrades: Modernizing refineries like Balikpapan to Euro V standards ensures that the "complex" crudes produced via EOR can be refined domestically into high-value fuels.

• Bureaucratic Speed: Minister Bahlil Lahadalia has prioritized accelerating the "Plans of Development" (PODs) for over 100 blocks to ensure EOR projects move from pilot to production faster.

Summary

In 2026, Enhanced Oil Recovery in Indonesia is a bridge between the nation’s glorious oil past and a carbon-managed future. By combining the chemical precision of the Rokan Block with the thermal power of Duri and the environmental potential of the new carbon market, Indonesia is ensuring that its mature fields remain a resilient engine for the national economy.

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