Oil and gas giant BP has inked the 30-year production sharing contracts (PSCs) for two deepwater exploration blocks located offshore Indonesia.
The PSC signing between BP and the government of Indonesia for Agung l and Agung ll exploration blocks comes following the decision to award the two gas blocks to BP on the second round of the 2021 Oil and Gas Working Area Bid Round on 18 March 2022.
Nader Zaki , BP regional president Asia Pacific, commented: “Our presence in Indonesia is now extended from the east in Papua Barat through our Tangguh LNG , the largest gas-producing field in Indonesia where we are also progressing one of our major CCUS projects , to the west in Aceh through our partnership in Andaman II, and now is complemented by adding Agung I and Agung II in East Java.”
Tangguh is the largest gas-producing field in the country. According to BP, the field is currently contributing 20 per cent of national gas production, which will increase to more than 30 per cent once Tangguh’s Train 3 starts up following the completion of the Tangguh Expansion Project.
BP also has a non-operated interest (30 per cent) in Andaman II PSC, an offshore deepwater exploration block in Aceh.
The Agung I Block covers an area of 6,656 square kilometres deepwater offshore Bali and East Java, while the Agung II Block is located in deepwater offshore of South Sulawesi, West Nusa Tenggara and East Java covering an area of 7,970 square kilometres. The area is underexplored with significant potential for gas resources, close to growing gas demand.
BP’s executive vice president for gas & low carbon energy, Anja-Isabel Dotzenrath , said that BP is committed to continue growing its gas and low-carbon business in Indonesia.