Petronas has expanded its presence in Indonesia by signing two new offshore production sharing contracts (PSCs) for the Serpang block in East Java and the Binaiya block in Eastern Indonesia. Awarded during Indonesia’s 2024 Petroleum Bidding Round, the Serpang PSC spans 8,498 sq km, with Petronas holding a 51% stake as operator, alongside INPEX (35%) and EO Serpang (14%).
In the Binaiya block, Indonesia’s Pertamina holds a 56% stake as operator, while Petronas and SK Earthon each own 22%. Petronas views the Serpang and Binaiya PSCs as key to strengthening its oil portfolio and regional partnerships. The Serpang block offers near-term development potential in a well-established basin, while the Binaiya block expands Petronas’ footprint in Eastern Indonesia alongside its existing Bobara block.Petronas now holds 11 PSCs in Indonesia, operating blocks in East Java and West Papua, and partnering in others across East Indonesia, the Natuna Sea, and Sumatra.
INPEX sees the Serpang block as key to expanding its gas and LNG business, aiming for quick development if exploration succeeds, with East Java expected to maintain steady energy demand.SK Earthon’s entry into the new Indonesian PSCs marks its presence in Southeast Asia’s top three oil-producing nations: Malaysia, Indonesia, and Vietnam. This move completes its strategic regional portfolio. The company previously made discoveries in Vietnam’s Cuu Long Basin and took operatorship of Malaysia’s SK427 block in 2022. Under the new PSCs, initial commitments include geological studies and 3D seismic surveys over 400 sq km.
