Indonesia’s Tuna block in the North Natuna Sea has entered a new phase of natural gas and crude oil exploitation this month, with the Russian energy firm Zarubezhneft assuming full operational control. Located within Indonesia’s Exclusive Economic Zone (EEZ), the project sits just 14 kilometres from the Vietnamese border in a region subject to long-standing maritime boundary disputes and overlapping claims from China.
Why the Tuna Block project is contested
The Tuna block is situated within an area that China claims via its “nine-dash line,” a maritime boundary that an international tribunal ruled illegal in 2016. Because of this, the project has faced consistent pressure from Beijing, which has previously demanded that Indonesia halt drilling operations. In 2021, reports indicated that China deployed the research vessel Haiyang Dizhi 10 and a coast guard vessel to manoeuvre near the site, actions viewed by regional observers as threats to Indonesia’s sovereign resource rights.
The shift to Russian operation
Zarubezhneft now holds the project independently after the withdrawal of its former partner, the British firm Harbour Energy. Harbour Energy divested its 50% stake in the Tuna Production Sharing Contract following the implementation of intensified United States sanctions against Russia in response to the war in Ukraine. This transition leaves a Russian state-linked entity as the sole operator in a maritime zone where China, a close ally of Moscow, has historically challenged foreign exploration.
What could happen next
The project’s future remains tied to several unresolved diplomatic and legislative hurdles. While Indonesia committed to exporting oil to Vietnam in 2018, the necessary maritime delimitation agreement signed in 2022 has yet to be ratified by the Indonesian national legislature, the DPR. Analysts suggest that the lack of ratification may be linked to the current administration’s attempt to navigate overlapping claims with China. It remains to be seen whether Beijing will apply the same level of interference toward a Russian-led project as it did when Western firms were involved.
Frequently Asked Questions
Why is the Tuna block considered a strategic asset?
The block is a resource-rich oil and gas field located within Indonesia’s EEZ. Its importance has grown due to the global energy crisis, particularly disruptions stemming from the situation in the Middle East.
Does Indonesia recognize China’s maritime claims in the area?
No. Indonesia maintains that its activities in the North Natuna Sea are within its sovereign rights, citing the 2016 South China Sea arbitration ruling which declared the nine-dash line illegal under international law.
How has the change in leadership affected the project?
Under President Prabowo Subianto, Indonesia and China have issued a joint statement regarding “joint development” in areas with overlapping claims. However, it is currently unclear if this includes the Tuna block or how it will impact the concessions granted to Zarubezhneft.
Given the shifting geopolitical landscape in the North Natuna Sea, how should Indonesia balance its energy independence goals with its complex diplomatic relationships with global powers?
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