Bumi Armada's subsidiary, Armada Kojo, has entered a production sharing contract (PSC) with Indonesia's Ministry of Energy and Mineral Resources for the exploration and development of the Kojo block in the Makassar Strait.

The company holds a 100% participating interest and will operate the PSC, which spans an area of 8,473km² with varying water depths.

The Kojo PSC area is estimated by MIGAS to contain 90.2 million barrels (mbbl) of oil and 2.1 trillion cubic feet (tcf) of gas.

Bumi Armada plans to acquire new seismic data and integrate it with existing subsurface information to assess the block's development potential.

This initiative is part of the company's strategy to capitalise on oil and gas discoveries using its expertise in floating production systems including floating production storage and offloading and potential floating liquefied natural gas facility or pipeline solutions.

This contract marks Bumi Armada's second operated PSC in Indonesia following the Akia PSC.

The company's strategic move aligns with its focus on developing oil and gas fields by leveraging its core competencies.

In September 2023, Bumi Armada had also entered into a non-binding agreement with Pertamina International Shipping and Davenergy Mulia Perkasa to develop and market LNG, aiming to commercialise the Madura gas field and adjacent areas.

Pertamina International Shipping, the marine logistics wing of state-owned Pertamina, and Davenergy Mulia Perkasa, a natural gas trading company, are key partners in this endeavour.

Meanwhile, Indonesia is looking to increase energy imports from the US by purchasing additional crude oil and liquefied petroleum gas, with deals valued at approximately $10bn (Rp163.4trn), as part of a broader strategy to balance trade with the US and avoid significant tariffs on exports.