Abstract

Indonesia’s oil industry is growing by leaps and bounds. Major reasons for this are the volume and variety of sediments in Tertiary basins along the Indonesian Archipelago.

Indonesia’s Tertiary basins can be classified into four categories according to genetic characteristics. These categories are Outer Arc, Foreland, Cratonic and Inner Arc basins. Each of these types has different hydrocarbon potential. Cratonic and Foreland basins have the highest potential as evidenced by the prolific finds in Sumatra and the Java Sea. On the other end of the scale are Inner Arc basins which have only thin, deep water sediments with limited hydrocarbon potential. Each Tertiary basin, or group of basins, in Indonesia is analysed for hydrocarbon potential based on its genetic origin and overall sedimentary and structural characteristics.

Exploration for hydrocarbons in Indonesia began in the late 1800’s and production started soon after Drake’s historic well in the United States. Inspite of this early start, the oil industry is just now entering a definitive stage in assessing the potential of many Tertiary basins throughout Indonesia. Evidence of this is manifest in the form of prolific new discoveries, such as: the reefs in Irian Jaya and northern Sumatra, hitherto unknown deltaic sand production offshore Kalimantan, and carbonate bank accumulations in the Java Sea.

Each of the above discoveries represents a new geologic dimension in a separate Tertiary basin. There are undoubtedly more of these to be discovered. The future for oil exploration in Indonesia looks very bright indeed.

Indonesia’s production at this time is approximately 1.4 million barrels of oil per day. Exploration and production activities are being carried out over most of Indonesia. It is inevitable, with all the geologic attributes in the form of multiple sedimentary targets in a profusion of Tertiary basins, that Indonesia will continue to be one of the great oil producing nations of the world and the cornerstone of the petroleum industry in Southeast Asia.