Petronas Indonesia plans major expansion, says country head

Petronas, the Malaysian state-owned energy company, plans to expand "aggressively" in Indonesia. It will create a hub in East Java for its operations and invest in exploration of Indonesia's remote eastern regions.

The new government of Indonesian President Prabowo Subito, which came into office in this month, pledged to boost energy development and reverse a decade-long decline by the former OPEC country.

Yuzaini Md Yusof is the head of Petronas Indonesia. She said that recent regulatory changes have made it easier for companies to develop energy projects.

Petronas has four oil and natural gas blocks in Indonesia, three of which are in East Java in the western part. It also holds participating interests in other blocks.

He said that the company plans to create a central hub in East Java for its three operations by linking production facilities and integrating logistics facilities.

Yusof said, without revealing investment figures: "Our first strategy is growing bigger in East Java." "Our next long-term plan is to expand our business in eastern Indonesia."

East Java will benefit from the completion of a pipeline in December 2025, which will connect the supply on the east side of the island with the demand in the densely populated west part. Petronas also wants to expand their business in East Java.

North Madura II is currently in exploration phase. Hidayah is the field located in North Ketapang. The first oil is expected to be produced by 2027. Petronas has also developed a new field of gas in the Ketapang Block.

Yusof stated that the East Java area has been a magnet for operators and companies working in East Java.

Petronas, a company based in eastern Indonesia with a 15% stake in the Masela project, signed a contract this year for a production-sharing agreement on the Bobara Block offshore West Papua.

Bobara will be Petronas first deepwater project as operator in Indonesia. The government estimates that the oil equivalent is 6.8 billion barrels. Yusof stated that Petronas was exploring the possibility of bringing in a partner to the block.

Yusof stated that "these two block acquisitions reaffirms our commitment to unlocking potential in eastern Indonesia, where the majority of the area is frontier which is high risk, and not many operators went through." (Reporting and editing by Fransiska Nangoy and Bernadette Cristina Munthe)

(source: Reuters)