Jakarta (Indonesia Window) – The total investment commitments from the signing of the production sharing contracts for oil and gas blocks between Indonesia and BP as well as Indonesia and Petronas reached 12.14 million U.S. dollars, with signature bonuses of 700,000 US dollars.

The three working areas signed here on Monday are Block Agung I, Block Agung II, and Block North Ketapang. All the three were offered by Indonesia through a direct bidding auction during the November 2021 - January 2022 period and was announced on March 18, 2022.

Indonesian Energy and Mineral Resources Minister Arifin Tasrif hoped that the signing of the contracts could encourage the investment climate for oil and gas processing in the archipelagic country.

Meanwhile, the ministry’s Director General for Oil and Gas, Tutuka Ariadji, said that the production sharing contracts for the exploration blocks have a term of up to 30 years.

Prior to signing the contracts, the three Cooperation Contract Contractors have completed their financial obligations by paying signature bonuses and submitting performance guarantees in accordance with prevailing regulations.

On that occasion, BP’s President for the Asia-Pacific region, Nader Zaki, said that his company’s working areas now stretch from the east to the west of Indonesia.

In the eastern region, BP is working on the Tangguh LNG project in Bintuni Bay, West Papua province which is the largest gas producing field in Indonesia and is also developing a CCUS (Carbon Capture, Utilization and Storage) technology project.

Meanwhile in the western part of Indonesia, BP, through a partnership, manages the Andaman II Block in Aceh.

"Now, we have Agung Blocks I and II in East Java. We thank you for the support and strategic partnerships that continue to be given to us," Zaki said.

Meanwhile, Petronas’ Vice President for Exploration, Redhani Abdul Rahman, said the signing was a progress for Petronas to participate in meeting Indonesia's energy needs.

"This signing is a tremendous progress for us to continue to develop our main business to meet energy needs in Indonesia. We are always committed to supporting future growth and providing positive values to the society by maximizing the potential of our assets in East Java," said Rahman.

Reporting: Indonesia Window