Petronas, through its subsidiary PC Ketapang II (PCK2L), has secured a 20-year extension for the Ketapang production sharing contract (PSC) located offshore Indonesia.

The extension, which will prolong the contract beyond its 2028 expiration, was granted by the Indonesian Government’s Ministry of Energy and Mineral Resources.

The Ketapang PSC, which was initially signed in 1998, encompasses the Bukit Tua oil and gas field in the East Java Sea, approximately 35km north of Madura Island.

Petronas, a Malaysian energy company, operates the Ketapang block with an 80% participating interest through PCK2L and Petronas Carigali.

The remaining 20% is held by PT Saka Ketapang Perdana.

In April 2022, Petronas commenced hydrocarbon production from Bukit Tua Phase-2B’s BTJTB-T2 well within the Ketapang block.

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By GlobalData

The development marked the fourth phase of expansion at Bukit Tua following the successful implementation of Phase 1, Phase 2A and Phase 3.

Petronas executive vice-president and CEO of upstream Datuk Adif Zulkifli said: “We are grateful to the Government of Indonesia for the PSC extension, which will allow Petronas to continue leveraging our strong portfolio in Indonesia, through our key strategic projects that we have planned for the Ketapang Working Area.”

“Since its first oil production in 2015, PCK2L has emerged as one of the key upstream players in East Java, delivering resources to effectively meet the region’s energy demand, and we will continue to foster robust collaborations with the Government of Indonesia and our partners to contribute towards reaching the national production targets.”

The Malaysian company’s presence in Indonesia is significant. Together with the operatorship of the North Madura II and North Ketapang PSCs, it is also a joint venture partner in seven other PSCs across Sumatra, the Natuna Sea, East Java and East Indonesia.