KONTAN.CO.ID-JAKARTA. Malaysian oil and gas company, Petronas, through its subsidiary PC Ketapang II Ltd., has obtained a 20-year contract extension for the Ketapang Working Area (WK) located in the Java Sea.

The approval for this contract extension was given by the Ministry of Energy and Mineral Resources (ESDM) on December 22, 2023, with a fixed participation rights composition or no changes. The Ketapang WK contract itself will end in 2028.

Executive Vice President & CEO of PETRONAS Upstream, Datuk Adif Zulkifli, appreciates the contract extension granted by the Indonesian Government. With the extended working period, Petronas is preparing to start several strategic projects planned for the Ketapang WK.

"Since its first oil production in 2015, PCK2L has become one of the main upstream oil and gas industry players in East Java by providing resources to meet energy demand in the region effectively. Of course, we will continue to foster strong cooperation with the Indonesian Government and our partners to contribute to achieving national production targets," said Adif in a press release, on Thursday (4/1).

The Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), Dwi Soetjipto, revealed that the contract extension for the Ketapang WK is expected to further enhance synergy to boost upstream oil and gas performance in Indonesia.

"With this contract extension, we hope that Petronas and the Indonesian Government can continue to strengthen synergy in initiating various efforts to improve the performance of Indonesia's upstream oil and gas, especially in meeting energy needs, lifting targets, and increasing state revenue," said Dwi.

In addition to managing the Ketapang WK, Petronas is also the operator for the North Madura II and North Ketapang WKs.

Editor: Syamsul Azhar