Petronas signs new PSC with Indonesia, extends Ketapang contract


The Indonesian government and national oil company Petronas on Tuesday signed an agreement to extend the Ketapang Production Sharing Contract (PSC) for another 20 years, and also signed a new offshore PSC.

Petronas announced a 20-year extension of its Java Sea block on January 4, and has since issued new extensions.

Under the latest extension, Petronas remains the operator, holding a 77.6% stake through its subsidiary PC Ketapang II Ltd. (PCK2L). PT Petrogas Jatim Sampang Energi and PT Saka Ketapang Perdana are both joint ventures owned by the Indonesian government.

PCK2L president Yuzaini Md Yusof said in the statement: “This 20-year PSC extension will not only drive our continued growth in Indonesia, but will also strengthen our portfolio in East Java, where we also operate two other contracts area.

“We are very grateful for this support and we will work with the government to achieve Indonesia’s 2030 production targets,” he added. The government has set a target to increase the Southeast Asian country’s hydrocarbon production to 1 million barrels per day by 2030 oil and 12 billion cubic feet of natural gas.

In Ketapang, Petronas has four development projects, all located in the Bukit Tua field. To date, the company has announced only one successful producing well, which came on stream in May 2015.

In 2022, Petronas drilled the BTJTBT2 well under the Bukit Tua 2B phase plan with a target depth of 1,890 meters (6,200.8 feet). According to a press release issued by Petronas on April 14, 2022, the Bukit Tua Phase 2B targets four development wells with a total production capacity of 12,500 barrels of oil equivalent per day and 30 million cubic feet of natural gas per day.

In East Java, in addition to Ketapang PSC, Petronas also owns the operating rights of North Ketapang and North Madura II.

Petronas will acquire the North Ketapang block in 2022. “Following this successful bid, Petronas will operate and hold 100% equity in this 3,131.8 square kilometer block. [1,209.2 square miles] Areas with water depths up to 100 meters [328.1 feet] below sea level,” it said in a press release on March 18, 2022.

Petronas made its first discovery in 2021 under the North Madura 2 production sharing contract. Tested at approximately 2,100 BOPD, the crude oil was of good quality,” Petronas said in a press release on February 24, 2021.

Meanwhile, the new PSC signed on Tuesday covers the Bobala working area offshore West Papua province. Petronas won the area in Indonesia’s 2023 tender, with an area of ​​8,444.49 square kilometers (3260.4 square miles).

“Under the PSC, Petronas will operate and hold 100% equity interest in the work area, with the first three-year commitment involving three geological and geophysical studies covering 2,000 square kilometres. [772.2 square miles] 3D seismic data collection and processing,” Petronas said in a separate media release.

Petronas added: “Currently, Petronas is the operator of the Ketapang, North Madura II and North Ketapang PSCs offshore East Java, and is the operator of the Ketapang, North Madura II and North Ketapang PSCs offshore Sumatra, the Natuna Sea, and onshore East Java. Joint venture partners in five PSCs onshore and offshore.

To contact the author, please email jov.onsat@rigzone.com





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