PETRONAS granted 20-year PSC extension for Java Sea’s Ketapang Area

PC Ketapang II Ltd. (PCK2L), a subsidiary of the global energy giant PETRONAS, has successfully secured a significant extension to its energy operations in the Java Sea. The 20-year extension of the Production Sharing Contract (PSC) for the Ketapang Working Area, initially set to expire in 2028, represents a major milestone for the company. This extension was officially granted by the Government of Indonesia through the Ministry of Energy and Mineral Resources on 22 December 2023, maintaining the same participating interests.

Datuk Adif Zulkifli, Executive Vice President and Chief Executive Officer of Upstream PETRONAS, expressed gratitude towards the Government of Indonesia for the PSC extension. He highlighted the opportunity for PETRONAS to continue leveraging its strong portfolio in Indonesia, particularly through strategic projects planned for the Ketapang Working Area.

Since the commencement of its first oil production in 2015, PCK2L has established itself as a key upstream player in East Java. The company has played a pivotal role in delivering resources to effectively meet the region’s energy demand. With this extension, PETRONAS reaffirms its commitment to robust collaborations with the Indonesian government and its partners, aiming to contribute towards reaching national production targets.

PETRONAS’s presence in the Indonesian energy sector is extensive. The company operates in the Ketapang, North Madura II, and North Ketapang PSC, located offshore East Java, and is a joint venture partner in seven other PSCs spanning across Sumatra, Natuna Sea, East Java, and East Indonesia.

This development signifies PETRONAS’s continued influence in the energy sector and its ability to maintain strong relationships with host governments, thereby ensuring long-term energy security and sustainability. The extension of the Ketapang PSC is a testament to PETRONAS’s expertise and commitment to advancing energy solutions in the region.