BP, Inpex, CNOOC, and LNG Japan enrich oil & gas arsenal with new Southeast Asian blocks

May 21, 2026, by Melisa Cavcic

UK-headquartered energy giant BP and its partners have penned three production sharing contracts (PSCs) for oil and gas blocks off the coast of Indonesia, Southeast Asia. The British player is also participating in another offshore block, which Japan’s exploration and production (E&P) company Inpex secured offshore Eastern Java in Indonesia.

The three new PSCs bring the UK firm’s total participation in oil and gas blocks in Indonesia to 11. Two of the latest PSCs are for the Bintuni and Drawa exploration blocks, which are located near the existing BP-operated Tangguh LNG in Papua Barat, creating potential for short-cycle development. The company also confirmed its participation in the Inpex-operated Barong block in East Java.

The agreements, part of the second Indonesia Petroleum Bidding Round 2025 hosted by the Ministry of Energy and Mineral Resources of Indonesia, which were signed between BP and the government of Indonesia, represented by SKK Migas, were witnessed by Bahlil Lahadalia, Minister of Energy and Mineral Resources.

At the Bintuni and Drawa blocks, BP’s partners comprise CNOOC Southeast Asia, MI Berau, a joint venture between Inpex and Mitsubishi Corporation, and Indonesia Natural Gas Resources Muturi, an LNG Japan Corporation. The UK player also holds a 49% stake in the Barong block, where Inpex acts as the operator with a 51% interest.

Location of Barong working area; Source: Inpex

William Lin, EVP Gas & Low Carbon Energy, commented: “These agreements demonstrate our ongoing investment in Indonesia’s energy security and economic growth. We already have world-class assets in the country, and, subject to success, the proximity of two of these new blocks to our existing infrastructure could support the potential future development and production of these resources.

“This year marks BP’s 60th in Indonesia and, through our dedicated regional team and continuous focus on safety and operational performance, we look forward to working with the government and our partners to continue supporting the country’s energy resilience and development objectives for years to come.”

The Barong working area is situated off the coast of East Java, where several oil and gas fields have been discovered; thus, Inpex underlines that East Java Province is expected to generate stable energy demand in the medium to long term.

The Japanese player and its partner anticipate an early transition to development and production if exploration activities are successful. The company expects that its upstream exploration activities in the Barong area will contribute to the expansion of its natural gas and LNG business.

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