bp and its partners signed three new Production Sharing Contracts (PSCs) in Indonesia, strengthening its presence in the Asian country and expanding its total participation to 11 oil and gas blocks.
The agreements correspond to the Bintuni, Drawa, and Barong exploration blocks, awarded during Indonesia’s 2025 second oil bidding round organized by the country’s Ministry of Energy and Mineral Resources.
New blocks are located near the Tangguh LNG project
Two of the acquired blocks, Bintuni and Drawa, are located near the Tangguh LNG facilities, operated by bp in West Papua.
The company indicated that proximity to existing infrastructure could favor future short-cycle developments and optimize potential production projects.
The third block, Barong, is located in East Java and will be operated by INPEX CORPORATION, with bp participating as a minority partner.
The company reinforces its energy strategy in Indonesia
William Lin, executive vice president for gas and low carbon energy, noted that the agreements reflect the company’s ongoing commitment to Indonesia’s energy security and economic growth.
“These agreements demonstrate our continued investment in Indonesia’s energy security and economic growth,” Lin stated.
The executive also highlighted that 2026 marks the 60th anniversary of bp’s presence in Indonesia, a country considered strategic within its regional natural gas and energy operations.
International alliances support new offshore projects
In the Bintuni and Drawa blocks, it will work alongside:
- CNOOC Southeast Asia Limited.
- MI Berau BV (a joint venture between INPEX and Mitsubishi Corporation).
- Indonesia Natural Gas Resources Muturi Inc. (linked to Japan LNG Corporation).
In the Barong block, INPEX will maintain a 51% operating interest, while bp will control the remaining 49%.
The signing of the contracts took place during the 2026 Indonesian Petroleum Association Convention and Exhibition, in the presence of Indonesia’s Minister of Energy and Mineral Resources, Bahlil Lahadalia.
Indonesia continues to attract energy investment
Indonesia seeks to increase investment in hydrocarbon exploration and production to strengthen energy security and leverage its offshore potential.
bp’s expansion occurs as the country promotes new bidding rounds to develop oil and gas resources in strategic regions, including West Papua and East Java.
bp considers that access to existing infrastructure, especially at Tangguh LNG, could accelerate future natural gas developments and improve the economic viability of new discoveries.
Source and photo: https://www.bp.com/