BP PLC has signed three new production sharing contracts (PSCs) in Indonesia, which it said present potential for fast-tracked development.
Two of the PSCs, the Bintuni and Drawa exploration blocks, sit near the BP-operated Tangguh LNG in Papua Barat province, a six-field project that started production 2009 and is now producing up to 11.4 million metric tons a year of liquefied natural gas (LNG), according to the British energy giant.
The location of the two new blocks presents “potential for short-cycle development”, BP said in a press release Wednesday.
BP’s partners in Bintuni and Drawa are CNOOC Southeast Asia Ltd, Indonesia Natural Gas Resources Muturi Inc of LNG Japan Corp, and INPEX Corp-Mitsubishi Corp joint venture MI Berau BV.
The third PSC, the Barong block, is in partnership with INPEX, the operator. BP owns 49 percent and INPEX has 51 percent.
“The Barong Working Area is situated off the coast of East Java, a location where several oil and gas fields have been discovered”, the Japanese company said separately. “East Java Province is expected to generate stable energy demand in the medium to long term.
“INPEX and its partner anticipate an early transition to development and production activities in the event that exploration activities are successful”.
INPEX expects Barong to contribute to its natural gas and LNG expansion.
Last week BP said it has secured its first project in Uzbekistan through the acquisition of a 40 percent stake in the North Ustyurt PSC. The project consists of six blocks: Birqori, Boyterak, Kharoy, Qoraqalpoq, Qulboy and Terengquduq.
“We are pleased to be entering our first project in Uzbekistan, alongside Uzbekneftegaz and our long-standing partner SOCAR”, Gio Cristofoli, BP president for Azerbaijan, Georgia and Türkiye, said in an online statement May 13. “We believe Uzbekistan has significant resource potential and see this as an opportunity to support the exploration and development of the country’s oil and gas resources, delivering long-term benefits to the region”.
BP bought 20 percent each from Uzbekistan’s state-owned JSC Uzbekneftegaz and the State Oil Company of the Republic of Azerbaijan (SOCAR). Uzbekneftegaz and operator SOCAR each retain 30 percent.
“The project is currently in its first phase, with SOCAR, as operator, undertaking seismic activities”, BP said.
BP aims to grow its upstream production to 2.3-2.5 million barrels of oil equivalent a day by 2030 with an investment plan of around $10 billion a year, according to the “reset” strategy it announced February 26, 2025.