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Indonesia's largest oil block faces 20 million-barrel loss after pipeline leak

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Tempo - January 22, 2026

Nandito Putra, Jakarta – Indonesia's Energy and Mineral Resources Minister Bahlil Lahadalia said a gas pipeline leak operated by PT Transportasi Gas Indonesia (TGI) disrupted production at the Rokan Block, one of the country's largest oil-producing assets, causing a potential loss of around 2 million barrels at the start of the year.

"Our pipeline leak resulted in an estimated production loss of about 2 million barrels in early 2026," Bahlil said during a working meeting with House of Representatives Commission XII on Thursday, January 22, 2026.

Although the incident was classified as an accident, Bahlil said it involved elements of negligence that could not be tolerated. He stated that sanctions would be imposed on officials within the Energy and Mineral Resources Ministry and state-owned enterprises found responsible.

Bahlil added that stronger supervision and risk mitigation measures should have been in place to prevent the disruption and to avoid similar incidents in the future.

Earlier, the ministry's Director General of Oil and Gas, Laode Sulaeman, said gas flows through the pipeline had gradually resumed over the past several days after being restricted due to safety concerns following the leak.

"As of midnight last night, gas flow has been fully restored, with pressure at safe levels to supply designated areas, including the Rokan Block," Laode said at the Energy Ministry on Wednesday, January 21.

The pipeline failure halted oil and gas operations at the Rokan Block for nearly three weeks. To offset the estimated 2 million-barrel loss, the Energy Ministry has set a target to increase output by an additional 5,000 to 6,000 barrels per day.

The measure aims to help Indonesia meet its national oil lifting target of 610,000 barrels per day in 2026. Laode said full normalization of gas supply and production at the Rokan Block is expected within the next two days, potentially limiting the long-term impact on the country's upstream oil and gas sector.

PT Transportasi Gas Indonesia first received reports of a suspected leak on the Grissik – Duri pipeline at kilometer point 222 in Batu Ampar village, Kemuning district, Indragiri Hilir regency, Riau, on January 2, 2026, at around 04:35 PM local time.

The pipeline plays a critical role in Rokan Block operations, as the gas it carries is used to power pump jacks across several oil fields in the area.

Source: https://en.tempo.co/read/2082233/indonesias-largest-oil-block-faces-20-million-barrel-loss-after-pipeline-lea

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