Petronas takes steps to unlock more hydrocarbons in Indonesian waters

Malaysia’s energy giant Petronas has penned a new production sharing contract (PSC) and prolonged an existing one off the coast of Indonesia to assist the country in bringing more hydrocarbons to the surface.

Following the award during the third round of Indonesia Petroleum Bid Round 2023, Petronas E&P Bobara, a subsidiary of Petronas, has now inked a PSC for the Bobara working area located offshore of West Papua, Eastern Indonesia, covering a total acreage of 8,444.49 square kilometers.

The PSC signing ceremony took place during the opening ceremony of the Indonesian Petroleum Association (IPA) Convention on May 14, at the Indonesia Convention Exhibition (ICE), BSD City, Tangerang.

Datuk Adif Zulkifli, Petronas’ Executive Vice President & CEO Upstream, commented: “The signing of the Bobara PSC marks a significant milestone in our steadfast commitment to sustainable energy exploration and development in the region.

“This reflects Petronas’ long-term dedication to supporting Republic of Indonesia’s aspiration to achieve the 2030 production targets. Petronas appreciates the unwavering support and trust given by the government of Indonesia to unlock the hydrocarbon potential in this exciting frontier area.”

Thanks to the PSC, the company will operate and hold 100% equity in this asset, where the commitments for the first three years involve three geological and geophysical studies, including 2,000 square kilometers of 3D seismic data acquisition and processing.

Furthermore, PC Ketapang II Ltd. (PCK2L), a subsidiary of Petronas, has signed a PSC extension for the Ketapang contract area in the Java Sea following the approval granted by the government of Indonesia through the Ministry of Energy and Mineral Resources on December 21, 2023. This effectively extends the contract until 2048.

As outlined in the terms of the PSC extension, PCK2L will continue to hold 77.6% participating interest as the operator, partnering with PT. Saka Ketapang Perdana and PT. Petrogas Jatim Sampang Energi. The Malaysian player claims that the signing strengthens its foothold in the country and further underscores its aspiration to unlock Indonesia’s vast hydrocarbon potential to meet the region’s energy demand.

Yuzaini Md Yusof, President Director of PCK2L, remarked: “Not only will this 20-year PSC extension drive our continuous growth in Indonesia but solidifies our portfolio in East Java where we also operate two other contract areas.

“The support from the government of Indonesia for this extension provides us with even greater confidence, enabling us to play a more effective role in supporting the country’s energy landscape. We are profoundly appreciative for this support, as we collaborate with the government towards achieving Indonesia’s 2030 production targets.”

Currently, the Malaysian player is the operator for the Ketapang, North Madura II, and North Ketapang PSCs, located offshore East Java, and is a joint venture partner in five PSCs situated both onshore and offshore Sumatra, Natuna Sea, East Java, as well as East Indonesia.

Petronas is among the companies that recently inked PSCs with Staatsolie for blocks offshore Suriname. The Malaysian player and its petroleum agreement contractors recorded 19 exploration discoveries and two exploration-appraisal successes last year in Malaysia.