Medco Energi’s New Oil Find Strengthens Indonesia’s Production Outlook

 Medco Energi, Indonesia’s leading independent energy company, has announced a significant oil discovery after completing drilling at its Senoro-3 wildcat well in the Senoro-Toili Block offshore Sulawesi.

The well encountered high-quality oil-bearing sands in an underexplored reservoir horizon, producing higher-than-expected flow rates during initial testing. This discovery is particularly important as Indonesia struggles to reverse its declining crude output, which has fallen steadily since peaking in the 1990s.

The new discovery sits within tie-back range of Medco’s existing Senoro gas infrastructure, which was originally developed for LNG exports. While Senoro is best known for its gas reserves, this oil find enhances the field’s value, enabling dual production streams.

Medco has already begun fast-track development planning, aiming to bring first oil online by late 2026. The discovery could also de-risk nearby exploration prospects, supporting future drilling campaigns in the block.