Low oil prices are having a significant impact on the exploration industry. Companies are making deep cuts to exploration budgets and are re-evaluating exploration strategies, and spud rates for offshore exploration wells have fallen dramatically as a consequence. This presentation, initially delivered at the Deepwater Asia Congress in Jakarta, in September 2015, examines the implications of reduced investment and activity on the outlook for exploration in Indonesia's deepwater sector. We look at the competitiveness of the sector versus opportunities in a global portfolio, comparing full-cycle breakeven prices, fiscal terms and prospectivity. We also share thoughts on what Indonesia can do to attract a greater share of global exploration investment, even as industry spending falls.