(World Oil) — bp has signed three production sharing contracts (PSCs) in Indonesia, expanding its upstream exploration portfolio near the company’s existing Tangguh LNG operations in Papua Barat and adding participation in a new East Java block.
The agreements cover the Bintuni and Drawa exploration blocks near the bp-operated Tangguh LNG project, as well as the INPEX-operated Barong block in East Java.
The PSCs were signed during the Indonesian Petroleum Association Convention & Exhibition 2026 as part of Indonesia’s second 2025 petroleum bidding round.
According to bp, the proximity of the Bintuni and Drawa blocks to existing Tangguh LNG infrastructure could support shorter-cycle development opportunities if exploration activity proves successful.
“These agreements demonstrate our ongoing investment in Indonesia’s energy security and economic growth,” said William Lin, bp executive vice president for gas and low carbon energy.
The agreements were signed with the Government of Indonesia through upstream regulator SKK Migas and witnessed by Indonesia’s Minister of Energy and Mineral Resources, Bahlil Lahadalia.
bp’s partners in the Bintuni and Drawa blocks include CNOOC Southeast Asia, MI Berau B.V. — a joint venture between INPEX Corporation and Mitsubishi Corporation — and Indonesia Natural Gas Resources Muturi, Inc., a subsidiary of LNG Japan Corporation.
In the Barong block, bp will hold a 49% participating interest alongside operator INPEX, which retains 51%.
The agreements increase bp’s total participation in Indonesian oil and gas blocks to 11 as the company continues expanding its LNG-linked upstream position in Southeast Asia.
