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A lack of investment is threatening Indonesia's once-promising oil and gas sector. (Photo courtesy of Inpex)
Business Spotlight

Indonesia's energy pipeline springs leak as Chevron eyes exit

Pertamina fights to maintain output as foreign players drop oil and gas projects

ERWIDA MAULIA, Nikkei Staff Writer | Indonesia

JAKARTA -- When Chevron and the Indonesian government signed an agreement last month to speed up investment in one of the country's biggest oil blocks, it was good news -- but also a reminder that an uncertain new era for Indonesian energy is almost at hand.

The deal to restart drilling in the Rokan block will unlock a final round of investment by Chevron before it hands over the field -- where it has operated since 1971 -- to national energy company Pertamina next August. And with that a significant chapter will close in the U.S. oil company's 90-year history in Indonesia's oil industry.

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