Indonesia Gets Rights to Develop South China Sea Gas Block

According to Indonesia's upstream oil and gas regulator SKK Migas, the first development plan for the Tuna offshore gas field has been approved, with a total estimated investment of $3.07 billion up to the start of production.

According to SKK Migas spokesperson Mohammad Kemal, the Tuna field, located in the South China Sea between Indonesia and Vietnam, is expected to reach peak production of 115 million standard cubic feet per day (MMSCFD) in 2027.

Natural gas from the Tuna field, which is operated by a local unit of London-listed Harbour Energy, is expected to be exported to Vietnam starting in 2026, Indonesia's energy minister has previously said.

SKK Migas chairman Dwi Soetjipto on Monday said that aside from economic benefits, the development of the project would underline Indonesia's maritime entitlements.

"There will be activity in the border area which is one of the world's geopolitical hot spots," Dwi said in a statement.

"The Indonesian navy will also participate in securing the upstream oil and gas project so that economically and politically, it becomes an affirmation of Indonesia's sovereignty."

Energy activities in the South China Sea have in recent decades been held hostage by disputes over which country has sovereign rights, with work by Vietnam, Malaysia and the Philippines in their exclusive economic zones disrupted by Chinese coast guard or marine surveillance vessels.

China claims sovereignty over almost the entire South China Sea citing its own historical maps, claims that an international arbitration tribunal in 2016 ruled has no legal basis.

In 2021, China told Indonesia to stop drilling for oil and natural gas in maritime territory that both countries regard as their own, people familiar with the matter told sources