PETRONAS Signs a 20-Year PSC Extension Deal for Ketapang Contract Area

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(PETRONAS, 14.May.2024) — IPC Ketapang II Ltd. (PCK2L), a subsidiary of PETRONAS, signed a Production Sharing Contract (PSC) extension for the Ketapang Contract Area located in the Java Sea following the approval granted by the Government of Indonesia through the Ministry of Energy and Mineral Resources on 21 Dec. 2023, effectively extending the contract until 2048.

Under the terms of the PSC extension, PCK2L will continue to hold 77.6 per cent participating interest as the operator, partnering with PT. Saka Ketapang Perdana and PT. Petrogas Jatim Sampang Energi.

The signing of the contract extension, which took place during the 48th Indonesian Petroleum Association Convention and Exhibition (IPA Convex) was signed by President Director of PCK2L Yuzaini Md Yusof for PETRONAS, in the presence of PETRONAS President and Group CEO Tan Sri Tengku Muhammad Taufik and Executive Vice President and Chief Executive Officer of Upstream PETRONAS Datuk Adif Zulkifli.. In addition, the Ministry of Energy and Mineral Resources of the Republic of Indonesia, Arifin Tasrif, was also present to witness the signing.

Yuzaini Md Yusof said, “Not only will this 20-year PSC extension drive our continuous growth in Indonesia but solidifies our portfolio in East Java where we also operate two other Contract Areas.”

“The support from the Government of Indonesia for this extension provides us with even greater confidence, enabling us to play a more effective role in supporting the country’s energy landscape. We are profoundly appreciative for this support, as we collaborate with the Government towards achieving Indonesia’s 2030 production targets,” he added.

With PCK2L’s history spanning over two decades since its farm-in in the year 2000, the signing strengthens PETRONAS’ foothold in the country and further underscores its aspiration to unlock Indonesia’s vast hydrocarbon potential. In addition, the continuous production in the Ketapang Contract Area since 2015 is a testament of PETRONAS’ commitment and expertise in meeting the region’s energy demand.

Presently, PETRONAS is the operator for the Ketapang, North Madura II, and North Ketapang PSCs, located offshore East Java, as well as the Bobara PSC, located in Offshore West Papua, and is a partner in five PSCs located both onshore and offshore Sumatra, Natuna Sea, East Java, as well as East Indonesia.

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