The transaction is one of three announced last December as part of the firm's effort to strengthen its portfolio and focus resources on the most competitive opportunities.

Steve Cox, managing director of Harbour’s Indonesian business unit, described the sale as a strategic milestone for the company. 

“The sale of most of our Indonesia assets marks a strategic milestone for Harbour, demonstrating our disciplined approach to managing our portfolio and follows our country exit from Vietnam last year,” Cox said in a statement issued on Tuesday.

“I'm grateful to our Indonesian colleagues for their work on these assets over the years and wish them well in their next chapter.”

London-headquartered Harbour was the operator of both blocks, holding a 28.67 percent interest in the producing Natuna Block A and a 50 percent stake in the under-development Tuna Block.

Prospects

Every Monday

With exclusive interviews and in-depth coverage of the region's most pressing business issues, "Prospects" is the go-to source for staying ahead of the curve in Indonesia's rapidly evolving business landscape.

View More Newsletter

By registering, you agree with The Jakarta Post's Privacy Policy

Sign Up

Thank You

for signing up our newsletter!

Please check your email for your newsletter subscription.

View More Newsletter

While the sale marks the relinquishment of these legacy assets, Harbour is not completely withdrawing from Indonesia. The company will maintain its presence in the archipelago through its ownership of oil and gas discoveries in the Andaman Sea.

Harbour retains a 40 percent participating interest as operator in the Andaman II Block and an 80 percent interest in the Central Andaman Block. The company is also involved as a non-operator in the South Andaman Block, where it holds a 20 percent participating interest alongside Mubadala Energy.

The Tuna Block sale comes against a backdrop of geopolitical complications.

Harbour was previously unable to continue development of the Tuna Block due to Western sanctions imposed on its Russian partner. 

Through its subsidiary Premier Oil Tuna B.V., Harbour partnered with ZN Asia Ltd., a subsidiary of Russian state-owned company Zarubezhneft, which holds the remaining 50 percent participating interest.

Despite the delays, momentum on the Tuna Block appears to be building. 

Read also: RI secures Russian commitment to resume stalled Tuna Block project

Energy and Mineral Resources Deputy Minister Yuliot said that Zarubezhneft was committed to resuming development of the project in June. The assurance followed a meeting on the sidelines of the 14th Joint Commission Meeting for Trade, Economic and Technical Cooperation between Indonesia and Russia in Kazan on May 12.

“Zarubezhneft expressed its commitment to resuming the project in June, next month. The government will provide full support for the continuation of this project,” Yuliot said in a statement issued by the Energy Ministry on May 13. 

The Tuna Block project, located in the highly prospective Natuna Sea, faced significant delays following the withdrawal of Premier Oil, a subsidiary of Harbour Energy. 

Zarubezhneft first entered Indonesia's upstream sector in 2020, acquiring a 50 percent participating interest in the Tuna Project through its subsidiary, ZN Asia Ltd.

Beyond the Tuna Block, Yuliot revealed that the Russian company had expressed strong interest in additional oil and gas opportunities in Indonesia, particularly through enhanced oil recovery (EOR) technology and the reactivation of idle wells.

Popular

Weakened rupiah disrupts business, education plans

1998 redux?

Prabowo's rare address raises political concerns