Chevron Eyes Return to Indonesia With Focus on Large Gas Reserves

Chevron Corporation CVX is reportedly setting its sights on major oil and gas opportunities in Indonesia, marking a potential return to a region it exited in 2023. Indonesia’s upstream regulator states that the company is eyeing blocks with estimated gas reserves of around 15 trillion cubic feet (Tcf) — a sizable target that reflects its ambitions in Southeast Asia.

Indonesia is expected to offer new exploration blocks in regions like Bali and the eastern parts of the country. Although Chevron has not yet confirmed specific details, its early evaluation of some of the potential assets in the country highlights its serious interest in the region’s untapped energy potential.

For a long time, Chevron has been facing setbacks in its international operations, specifically in Venezuela and Kazakhstan, due to rising geopolitical complexity. Venezuelan liftings to the United States have halted due to license limitations, and Kazakhstan’s output growth has drawn scrutiny amid OPEC+ dynamics. Therefore, CVX’s interest in Indonesian oil and gas blocks is of utmost importance, as it can create a positive trajectory for the company, given that Indonesia’s assets have high oil and gas output potential.

CVX’s Strategic Shift After 2023 Exit

Chevron's interest comes just a few years after it divested from the Indonesia Deepwater Development (IDD) project. Located in the Makassar Strait, IDD comprised the Bangka and Gendalo-Gehem gas projects, with a combined recoverable resource of nearly 3 Tcf. Development had stalled due to a redesign of the facility, prompting Chevron to withdraw.

Now, the company appears ready to re-enter the Indonesian upstream sector, focusing on larger reserves and potentially more favorable project conditions.

CVX’s Zacks Rank and Key Picks

Houston, TX-based Chevron is one of the largest publicly traded oil and gas companiesthat participates in every aspect related to energy —from oil production to refining and marketing. Currently, CVX has a Zacks Rank #5 (Strong Sell).

Investors interested in the energy sector might look at some top-ranked stocks like Prairie Operating Co. PROP, Global Partners LP GLP and RPC, Inc. RES. While Prairie Operating and Global Partners currently sport a Zacks Rank #1 (Strong Buy) each, RPC carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Houston-based Prairie Operating is an independent energy company engaged in the development and acquisition of proven, producing oil and natural gas resources principally in the United States. The Zacks Consensus Estimate for PROP’s 2025 earnings indicates 389.05% year-over-year growth.

Global Partners is a Delaware limited partnership formed by affiliates of the Slifka family. Global Partners owns, controls or has access to one of the largest terminal networks of refined petroleum products in New England. The Zacks Consensus Estimate for GLP’s 2025 earnings indicates 17.84% year-over-year growth.

Atlanta, GA-based RPC is an oilfield service provider in almost all of the prospective plays, like the Rocky Mountain regions, Appalachian area, Gulf of Mexico and other resources in the United States. The Zacks Consensus Estimate for RES’ next quarter earnings indicates 33.33% growth.

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This article originally published on Zacks Investment Research (zacks.com).

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