The North Sumatra-Mergui Basin is a convergent basin which extends across the Malacca Strait and its coastal fringes in Sumatra, Peninsular Malaysia and Thailand. This report considers just the Indonesian territory. The onshore sector is well-explored, with more than 250 exploration wells across more than 130 years. Most recent discoveries have been small (less than 3 mmboe), but the 276 bcf Benggala discovery (2012) proves material gas potential remains. The mature operating environment offers contractors low-cost development opportunities with potentially short lead times to production and we therefore expect the majority of future activity to target this play. Notable explorers, including Repsol and Eni, operate acreage in deepwater, but we do not expect any exploration wells in the next few years. We also anticipate low drilling levels on the shelf - with Kris Energy the only company likely to spud an exploration well before 2018 .