Indonesia

Shell’s presence in Indonesia goes back more than 100 years when the discovery of crude oil in Sumatra led to the formation of Royal Dutch Petroleum Company.

Shell has upstream and downstream activities in Indonesia. In Downstream, Shell's business activities include the marketing of fuels, lubricants, and bitumen. In Upstream, Shell is a partner of Inpex, the operator of the Masela production sharing contract, which includes the Abadi gas field. Shell has a 35% interest in this pre-development stage project.

Country Financial Analysis

In 2018, revenues mostly came from the downstream marketing business. The loss was due to lower sales volumes of the retail business and investment in the Upstream business which has not yet started commercial production. No profits were made in Upstream as the reserves have not been developed.

As of 2018, the accumulated earnings figure was negative as a result of prior-year losses in the retail business when sales volumes fell because of the local government fuel subsidy policy.

Tax paid of $3.4 million reflects payments made in advance which, as a loss was reported, will be refundable.