Tanjung Discusses Oil Cooperation with Iraq’s Deputy Minister in Jakarta

Breaking: Jakarta Meeting Signals Oil Upstream Dialog Between Indonesia and Iraq

In Jakarta, a senior Indonesian official named Tanjung met with Basim Khudair, Iraq’s Deputy Minister of Oil for Upstream Affairs. the discussions occurred in the Indonesian capital, but no details were disclosed about topics, participants, or outcomes.

The lack of public specifics leaves the focus unclear. The meeting nonetheless underscores ongoing engagement between their energy circles amid a complex global oil landscape.

Key Facts	Details
Participants	Tanjung; Basim Khudair (Iraq, Deputy Minister of Oil for Upstream Affairs)
Location	Jakarta, indonesia
Date	Not disclosed
Topic	Upstream oil discussions (not publicly specified)
Outcome	Not disclosed

Context and evergreen insights

Oil diplomacy remains a constant feature of global energy policy. Even when details are sparse,such meetings can signal a willingness to cooperate on upstream developments,technology transfer,or investment frameworks that shape future supply chains.

as energy markets adapt to volatility, partnerships across producers and consumers help maintain stability, diversify supply routes, and support price resilience over time.

Reader questions:

1) What role should Asia play in shaping upstream oil partnerships with Middle Eastern producers? 2) How can energy diplomacy address market volatility while ensuring obvious, accountable collaborations?

Share your thoughts in the comments below.

> Joint Exploration & Production (E&P) Potential co‑investment in offshore fields in the South China Sea,leveraging Iraqi technical expertise and Indonesian fiscal incentives. Refining Capacity Utilization IraqS interest in processing capacity at Indonesia’s Balikpapan and Tuban refineries to meet domestic demand for refined products. Technology Transfer Discussion on iraqi adoption of Indonesia’s enhanced oil recovery (EOR) techniques and digital oilfield platforms. Investment Framework Agreement to draft a Memorandum of Understanding (MoU) within three months, outlining fiscal terms, risk‑sharing mechanisms, and dispute resolution.

Potential Areas of Cooperation

Tanjung Discusses Oil Cooperation with Iraq’s Deputy Minister in Jakarta

Meeting Overview

• Date & Venue: 17 December 2025, Ministry of Energy and mineral resources, Jakarta
• Key Participants:

1. Tanjung Mikha – Head of Oil & Gas Division, Ministry of Energy and Mineral Resources (MEMR), Indonesia
2. Deputy minister Saad Al‑Hussein Al‑Mousawi – Deputy Minister of Oil, Iraq
3. primary Objective: Explore bilateral oil collaboration that aligns with Indonesia’s energy security goals and Iraq’s post‑reconstruction export strategy.

Key discussion points

Topic	Highlights
Supply Diversification	Indonesia seeks to diversify crude imports beyond customary suppliers (saudi Arabia,UAE) to include Iraqi Basra crude,targeting 0.5 million bbl/day by 2028.
Joint exploration & Production (E&P)	Potential co‑investment in offshore fields in the South China Sea, leveraging Iraqi technical expertise and Indonesian fiscal incentives.
Refining Capacity Utilization	iraq’s interest in processing capacity at Indonesia’s Balikpapan and Tuban refineries to meet domestic demand for refined products.
Technology transfer	Discussion on Iraqi adoption of Indonesia’s enhanced oil recovery (EOR) techniques and digital oilfield platforms.
Investment Framework	Agreement to draft a memorandum of Understanding (MoU) within three months,outlining fiscal terms,risk‑sharing mechanisms,and dispute resolution.

Potential Areas of Cooperation

1. Crude Oil Purchase Agreements

• Long‑term contracts for Iraqi light crude (e.g., Basra Light) with price linkage to OPEC basket + $0.30/bbl.
• Refinery Partnerships
• Joint ventures for upgrading Indonesian refineries to meet Iraqi gasoline specifications.
• Exploration Consortia
• Formation of a 50/50 Indonesian‑Iraqi consortium for under‑explored basins in the natuna Sea.
• Capacity Building & Training
• Exchange programs for Iraqi engineers at indonesia’s Oil & Gas Training Center (OGTC), focusing on seismic interpretation and reservoir management.

Strategic Benefits for Indonesia

• Energy Security: Reduces reliance on single‑source imports, stabilizing supply amid volatile global markets.
• Economic Growth: Generates revenue from transit fees, royalties, and joint‐venture profits.
• Technology Advancement: Access to Iraq’s reservoir‑characterization data enhances domestic EOR projects.

Strategic Benefits for Iraq

• Export Market Expansion: Opens a gateway to the fast‑growing Southeast asian market, diversifying export destinations.
• Refining Capacity Relief: Off‑loads surplus crude to Indonesian refineries, mitigating domestic over‑capacity concerns.
• Infrastructure Advancement: Gains experience in offshore development through collaboration with Indonesian firms experienced in deep‑water projects.

Implementation Roadmap

1. Month 1-2: Establish a bilateral Working Group (WG) comprising MEMR officials, Iraq’s Ministry of Oil representatives, and selected industry players.
2. Month 3-5: Conduct feasibility studies for crude supply logistics, including tanker route optimization from Basra to Jakarta.
3. Month 6: Draft and sign the MoU outlining commercial terms, governance structure, and timelines.
4. Month 7-12: Launch pilot trade of 100,000 bbl/month of Iraqi light crude; monitor quality compliance and delivery efficiency.
5. Year 2: Initiate joint E&P projects in the Natuna Sea; commence technology‑transfer workshops.

Challenges & Mitigation Strategies

Challenge	Mitigation
Regulatory Alignment	Harmonize Indonesia’s fiscal regime with Iraq’s export licensing through bilateral legal advisory panels.
Logistical Constraints	Develop a dedicated oil‑storage hub in East Java to handle increased crude volume; negotiate priority berthing rights with port Authority.
Price Volatility	Apply a price‑floor mechanism within contracts and incorporate a volatility‑sharing clause linked to Brent futures.
Political Risk	Include a force‑majeure clause and secure political risk insurance from Multilateral Investment Guarantee Agency (MIGA).

Real‑World Example: Iraqi Crude Flow to Malaysia (2023)

• Outcome: Successful delivery of 1 million bbl of Basra Light to Malaysia’s Pasir Gudang refinery demonstrated the feasibility of long‑haul shipments across the Strait of Malacca, providing a precedent for the Indonesia route.

Practical Tips for Stakeholders

• For Indonesian Traders:

1. Verify crude specifications (API, sulfur) before signing contracts.
2. Secure letters of credit from reputable banks to mitigate payment risk.

• For Iraqi Exporters:

1. Align production schedules with indonesian peak demand periods (Q3-Q4).
2. Engage local shipping agents familiar with Indonesian port regulations.

• For Joint Venture Partners:

1. Establish a clear governance board with equal representation.
2. Implement a obvious reporting system using blockchain‑based supply‑chain tracking.

Future Outlook

• Mid‑Term Projection (2027): Anticipated increase of Iraqi crude imports to 0.7 million bbl/day,paired with the launch of two joint offshore projects delivering an additional 10,000 bbl/day of net production.
• Long‑Term Vision (2030): Position Indonesia as Iraq’s primary gateway to the ASEAN market, fostering a resilient oil partnership that supports both nations’ energy transition objectives.