Malaysian PETRONAS has announced that its subsidiary, PC Ketapang II Ltd., has secured a 20-year extension for the Production Sharing Contract (PSC) for the Ketapang Working Area located in the Java Sea.

This PSC was set to expire in 2028 but has now been extended until 2048. The Government of Indonesia, through the Ministry of Energy and Mineral Resources, officially granted the extension on December 22, 2023, with the same composition of participating interests.

In a statement, Datuk Adif Zulkifli, Executive Vice President and Chief Executive Officer of Upstream PETRONAS, expressed his gratitude to the Government of Indonesia for the PSC extension. He also highlighted the importance of this extension for PETRONAS, as it will allow the company to continue leveraging its strong portfolio in Indonesia and carry out its key strategic projects in the Ketapang Working Area.

“Since its first oil production in 2015, PCK2L has emerged as one of the key upstream players in East Java, delivering resources to effectively meet the region’s energy demand, and we will continue to foster robust collaborations with the Government of Indonesia and our partners to contribute towards reaching the national production targets,” Zulkifli added.

Currently, PETRONAS is the operator for the Ketapang, North Madura II, and North Ketapang PSC, located offshore East Java. The company is also a joint venture partner in seven other PSCs, both onshore and offshore, in Sumatra, the Natuna Sea, East Java, and East Indonesia.