The Kutei Basin is the largest Cenozoic basin in Indonesia and covers an extensive area of onshore Kalimantan, extending into ultra-deepwater at the centre of the Makassar Strait. Future exploration activity is expected to focus on two main offshore plays that offer the majority of remaining yet-to-find: the shallow coastal waters of the Shelf play, and an ultra-deepwater Tertiary turbidite sandstone play. The Kutei Basin delivered the largest volume of new resource in Indonesia over the last decade, and offers the largest future resource addition potential, mostly from the deepwater play. However, the Kutei Basin underperformed in terms of value creation due to tough PSC terms and long project leads. Indonesian regulators are actively reviewing the fiscal elements in an effort to stimulate upstream activity and incentivise exploration. New fiscal terms are expected to be released in Q3 2016.