Petronas expands presence in Indonesia with new PSC, extension agreement
Petronas E&P Bobara, a subsidiary of Malaysia's state-owned oil and gas company, Petronas, has secured a production sharing contract (PSC) for the Bobara working area, located offshore West Papua, eastern Indonesia, Petronas said on May 14.
The Bobara working area, spanning a total acreage of 8,444.49 km2, was awarded to Petronas during the third round of Indonesia Petroleum Bid Round 2023. Under the PSC, Petronas will operate and hold 100% equity in this strategic working area. Initial commitments include conducting three geological and geophysical studies, including the acquisition and processing of 2,000 km2 of 3D seismic data within the first three years.
Another Petronas subsidiary, Ketapang II, has secured a PSC extension for the Ketapang contract area in the Java Sea. This extension, granted by the government of Indonesia in December 2023, effectively extends the contract until 2048.
Under the terms of the PSC extension, Ketapang II (PCK2L) will maintain a 77.6% participating interest as the operator, in collaboration with partners Saka Ketapang Perdana and Petrogas Jatim Sampang Energi.
Currently, Petronas operates several PSCs in Indonesia, including Ketapang, North Madura II, and North Ketapang, located offshore East Java, in addition to the newly acquired Bobara PSC offshore West Papua. Petronas also holds partnership interests in five PSCs located both onshore and offshore Sumatra, Natuna Sea, East Java, and East Indonesia.