NewsPetronas moves forward with oil field development in Indonesian waters

Petronas moves forward with oil field development in Indonesian waters

Home Fossil Energy Petronas moves forward with oil field development in Indonesian waters

January 17, 2025,
by

Melisa Cavcic

PC North Madura II, a subsidiary of Malaysia’s state-owned energy player Petronas, has confirmed a final investment decision (FID) for an oil field in the North Madura II contract area, East Java, Indonesia.

Illustration; Source: Petronas

The FID comes a year after SKK Migas, Indonesia’s oil and gas regulator, confirmed the green light for a development plan related to the Hidayah oil field, with approximately 88.55 million stock tank barrel oil reserves. Based on the development plan, the field will come into operation in early 2027, with an initial production of 8,973 barrels of oil per day. The peak production of 25,276 bpd is expected to be reached in 2033.

Mohd Redhani Abdul Rahman, Petronas’ Vice President of International Assets of Upstream, highlighted: “Reaching the FID for the Hidayah field is a significant milestone for Petronas in Indonesia. This achievement builds on the momentum of our promising oil discovery in the North Madura II contract area in 2021, paving the way for us to play a more strategic role in supporting the region’s growing energy needs.”

As the operator and owner, Petronas has a 100% interest in the Hidayah production sharing contract (PSC). The development plan encompasses the drilling of oil production wells, supported by an unmanned integrated wellhead and central processing platform. The plan entails a floating storage and offloading (FSO) unit with living quarters and a central control room.

Mohd Jukris Abdul Wahab, Petronas Executive Vice President and Chief Executive Officer of Upstream,commented: “This milestone underscores Petronas’ unwavering commitment to supporting the government of Indonesia’s target of achieving energy self-sufficiency.”

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The Malaysian giant operates the Ketapang, North Madura II, and North Ketapang PSCs offshore East Java, alongside the Bobara PSC offshore West Papua. The company is also a joint venture partner in five PSCs spanning onshore and offshore Sumatra, the Natuna Sea, East Java, and East Indonesia.

Given the growing energy transition momentum, Petronas is keen on expanding its global footprint while exploring lower-carbon initiatives to support sustainable energy development. Last week, the company, through Malaysia Petroleum Management (MPM), in collaboration with Beicip Franlab Asia, embarked on an integrated basin study.

This study, which leverages advanced 4D modeling and machine learning technologies to analyze the subsurface architecture at both basin and reservoir scales, will explore untapped resources in the Malay Basin, located off the coast of Peninsular Malaysia.

Petronas’ study is focused on predicting hydrocarbon migration and entrapment by harnessing big data from the Malay Basin, where over nine billion barrels of oil equivalent have been produced since the 1970s. A batch of recent exploration activities have also yielded more discoveries.

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As such discoveries are interpreted to highlight the basin’s continued potential, the Malaysian player is convinced this basin presents substantial opportunities beyond hydrocarbons,

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