PHE will acquire a 20% participating interest in Masela PSC, while Petronas Masela will obtain a 15% interest, and Inpex Masela, the operator, will retain the remaining 65% participating interest in the offshore production block Masela
Petronas, through its subsidiary Petronas Masela, and Pertamina Hulu Energi (PHE) have agreed to acquire a 35% stake in the Masela Block production sharing contract (Masela PSC), offshore Indonesia.
Petronas currently participates in six PSCs. (Credit: PETRONAS)
Located in the deep waters of the west Arafura Sea, Eastern Indonesia, Masela PSC is currently owned by Shell Upstream Overseas Services (Shell).
Under the terms of the sale and purchase agreements (SPA), PHE will acquire a 20% participating interest in Masela PSC from Shell.
Also, Petronas Masela will obtain a 15% interest in the Masela PSC, which includes the Abadi gas project development, a natural gas field in the Arafura Sea.
Inpex Masela, the operator of the Masela Block, will retain the remaining 65% participating interest in the offshore production block.
The completion of the transaction is subject to regulatory approval and certain conditions.
Petronas Group CEO and president Tan Sri Tengku Muhammad Taufik said: “This acquisition marks a significant milestone in Petronas’ portfolio expansion in Indonesia.
“Petronas is excited to participate in the Masela Block which is one of the country’s key strategic projects.
“Our participation underscores the commitment to supporting Indonesia’s production target to achieve one million barrels of oil per day and 12 billion standard cubic feet per day of gas by 2030.”
Petronas said that the acquisition will provide an opportunity to contribute its technical expertise in the development and monetisation of the block.
The transaction would further strengthen the company’s global LNG portfolio, to help meet the growing demand for low-carbon energy from Indonesia and across the region.
It intends to work closely with partners PHE, Inpex and SKK Migas, to unlock the full potential of Masela PSC, while focusing on the environment and local communities.
Petronas currently participates in six PSCs, located both onshore and offshore Sumatra, Natuna Sea, East Java, along with East Indonesia.
Also, the company serves as the operator for Ketapang PSC, North Ketapang PSC and North Madura II PSC, located offshore East Java.
