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Oil giants BP, Petronas secure three Indonesian oil and gas blocks
United Kingdom-based oil producer BP and Malaysia-based Petronas are set to manage the Agung I, Agung II and North Ketapang working areas in East Java.
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An oil and gas rig in the Offshore North West Java (ONWJ) Block operated by state-owned Pertamina is pictured in an undated photograph. (SKK Migas/Handout)
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nited Kingdom-based oil producer BP and Malaysia-based Petronas are set to manage the Agung I, Agung II and North Ketapang working areas in East Java.
The Upstream Oil and Gas Special Regulatory Task Force (SKK Migas) signed the production-sharing contract (PSC), worth US$12.14 million, in Jakarta on Monday.
“Considering BP and Petronas’s capabilities and experience as international oil companies with ever-growing oil and gas production in Indonesia, we believe they will invest sustainably and fulfill the commitments made in the working areas,” SKK Migas head Dwi Soetjipto said in a statement issued on Monday.
All three working areas were offered by the government through the second phase of a direct bidding scheme in 2021. The winners of the auction were announced on March 18.
BP will manage Agung I and Agung II, working areas estimated to have 985 billion cubic feet (BCF) and 16.7 trillion cubic feet (TCF), respectively, in recoverable sources.
Meanwhile, Petronas Carigali Ketapang II, a subsidiary of Petronas, will manage the North Ketapang working area, estimated to have recoverable resources of 270 million barrels of oil and 1.5 TCF of natural gas.
Read also: Oil majors are leaving Indonesia: Should we be concerned?
