Petronas signs a 20-year PSC extension deal for Ketapang contract area

May 16, 2024

(WO) — PETRONAS, Malaysia's state-owned oil and gas company, has secured a 20-year extension for the Ketapang Contract Area located in the Java Sea. The extension, approved by the Indonesian Government through the Ministry of Energy and Mineral Resources, prolongs the contract until 2048.

Under the terms of the extension, PETRONAS subsidiary PC Ketapang II Ltd. (PCK2L) will retain its role as the operator with a 77.6% participating interest, partnering with PT. Saka Ketapang Perdana and PT. Petrogas Jatim Sampang Energi.

The signing of the contract extension occurred during the 48th Indonesian Petroleum Association Convention and Exhibition (IPA Convex). Yuzaini Md Yusof, President Director of PCK2L, signed the agreement on behalf of PETRONAS, in the presence of PETRONAS President and Group CEO Tan Sri Tengku Muhammad Taufik and Executive Vice President and Chief Executive Officer of Upstream PETRONAS Datuk Adif Zulkifli. Arifin Tasrif, the Indonesian Minister of Energy and Mineral Resources, was also present to witness the signing.

Yuzaini Md Yusof expressed confidence in the extension, highlighting its significance in driving PETRONAS' growth in Indonesia. He emphasized the company's commitment to supporting Indonesia's energy landscape and achieving the country's 2030 production targets.

With a history spanning over two decades since its farm-in in 2000, PETRONAS sees the contract extension as a testament to its commitment to Indonesia and its ambition to unlock the country's hydrocarbon potential. The continuous production in the Ketapang Contract Area since 2015 reflects PETRONAS' expertise and dedication to meeting the region's energy demand.

PETRONAS currently operates several other contract areas in Indonesia, including North Madura II and North Ketapang PSCs offshore East Java, as well as the Bobara PSC offshore West Papua, and is a partner in five other PSCs located across Sumatra, Natuna Sea, East Java, and East Indonesia.

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