Criterium Energy CEO Matthew Klukas joined Steve Darling from Proactive to discuss the company’s strategy to expand oil and gas production in Indonesia through low-cost, infrastructure-led development projects.
Klukas explained that Criterium Energy is focused on upstream opportunities across Southeast Asia and currently holds interests in three production sharing contracts (PSCs) in Indonesia. He pointed to strong domestic energy demand, supportive government policies, and Indonesia’s goal of significantly increasing oil and gas production by 2030 as key industry tailwinds.
The company’s primary producing asset is the Tungkal PSC, which currently generates just under 1,000 barrels of oil equivalent per day. Criterium plans to materially increase production by bringing the Southeast Mengoepeh gas field online using existing wells, processing facilities, and transportation infrastructure.
Klukas said the project is expected to cost less than US$2 million while potentially more than doubling current production and significantly improving company cash flow. He emphasized that leveraging existing infrastructure allows Criterium to rapidly add production with relatively low capital intensity.
Beyond Tungkal, the company also holds an interest in the Bulu PSC, an offshore gas development project with future commercialization potential, as well as the West Salawati PSC, which offers additional long-term development and exploration upside.
Management said the company’s broader strategy is centered on growing production within internally generated cash flow while simultaneously reducing debt levels.
Klukas also highlighted the speed at which projects can advance in Indonesia, noting that the Southeast Mengoepeh development is expected to move from final investment decision to first production in less than a year.
Criterium believes its combination of low-cost development opportunities, existing infrastructure access, and exposure to growing Southeast Asian energy demand positions the company well for future growth.
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