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PETRONAS and PT Pertamina Hulu Energi Acquire 35% Participating Interest in Masela Block, Indonesia

2023 Media Release - 25 Jul

Jakarta, 25 July 2023 – PETRONAS’ subsidiary, PETRONAS Masela Sdn. Bhd. (PETRONAS Masela) today signed the Sale and Purchase Agreement (SPA) with Shell Upstream Overseas Services (I) Limited (Shell) for the acquisition of 15 per cent participating interest in the Production Sharing Contract of the Masela Block (Masela PSC), located in the deep waters of west Arafura Sea, Eastern Indonesia. The transaction is currently pending completion subject to regulatory approval and fulfillment of conditions precedent.

The acquisition was part of a joint bidding collaboration between PETRONAS Masela and its partner, PT Pertamina Hulu Energi (PHE) where both entities will acquire Shell’s entire 35 per cent participating interest in the Masela PSC.  PHE also signed its SPA with Shell today to take up 20 per cent participating interest. INPEX Masela Ltd. (INPEX), the operator of the Masela Block, holds the remaining 65 per cent participating interest.

A ceremony to mark the signing of the SPA was held during the 47th Indonesian Petroleum Association (IPA) Convention & Exhibition, at Indonesia Convention Exhibition (ICE), BSD City, Tangerang, Indonesia on 25 July 2023. PETRONAS was represented by its President and Group CEO, Tan Sri Tengku Muhammad Taufik and Executive Vice President and Chief Executive Officer of Upstream, Datuk Adif Zulkifli while Shell was represented by its Director, Finance for Acquisition, Divestment and NBD Asia, Soo Kuo Tong.

Left to right - Chief Executive Officer of PT Pertamina Hulu Energi, Wiko Migantoro; Director, Finance for Acquisition, Divestment and NBD Asia of Shell Upstream Overseas Services (1) Limited, Soo Kuo Tong; Executive Vice President and Chief Executive Officer of Upstream PETRONAS, Datuk Adif Zulkifli; President & Chief Executive Officer of INPEX Corporation, Takayuki Ueda; and President Director and Chief Executive Officer of PT Pertamina, Nicke Widyawati.

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 in 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.

The project also provides an opportunity for PETRONAS to contribute our technical expertise in the development and monetisation of the block, and will further strengthen our global LNG portfolio towards meeting growing demand for lower-carbon energy from Indonesia and across the region. 

We look forward to working closely with our partners PHE, INPEX and SKK Migas towards unlocking the full potential of this asset, while maintaining our strong focus on environmental stewardship and the enrichment of local communities.”

PETRONAS is presently a joint venture partner in six PSCs located both onshore and offshore Sumatra, Natuna Sea, East Java, as well as East Indonesia and is also the operator for the Ketapang PSC, North Ketapang PSC and North Madura II PSC, located offshore East Java.

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