Indonesia: Government Awards Two Offshore PSCs to BP

Indonesia Government Awards Two Offshore PSCs to BP

Indonesian government has awarded BP two offshore oil and gas production sharing contracts (PSCs). The company has been awarded 100% interests in the offshore West Aru I and II PSCs in the Arafura Sea, Indonesia.

The West Aru I and II PSCs are located some five hundred kilometres southwest from the BP-operated North Arafura PSC and two hundred kilometres west from the Aru island group, in the Maluku province of Indonesia. The West Aru I PSC covers an area of approximately 8,100 square kilometres and the West Aru II PSC covers an area of approximately 8,300 square kilometres. The two blocks have water depths ranging between 200 metres and 2,500 metres. BP expects to begin seismic operations in these blocks in the near future.

“In the past two years BP has deepened its position in Indonesia through access to four coalbed methane PSCs in Kalimantan and three conventional gas blocks in Papua. These two new blocks are strong additions to this portfolio and will benefit from BP’s expertise in deepwater exploration. We appreciate the continued support and confidence of the Government of Indonesia,” said William Lin, BP’s Regional President for Asia Pacific.

Including the award of these blocks, BP has gained access to 69 new licence blocks in 11 countries around the world since October 2010, including the Kalimantan coalbed methane and North Arafura blocks in Indonesia. The company plans to double its spend on exploration worldwide over the next few years.

BP has over 35 years experience in Indonesia and is one of the largest foreign investors in the country. Activities are dominated by its exploration and production business, notably the Tangguh LNG operations in Papua Barat province.

Offshore Energy Today Staff , November 21, 2011