A sign for a Petroliam Nasional Bhd (Petronas) gas station stands near the Petronas KLCC Twin Towers in Kuala Lumpur, Malaysia. - Goh Seng Chong/Bloomberg
JAKARTA: Malaysian national oil company Petroliam Nasional Bhd (PETRONAS) plans an “aggressive” expansion in Indonesia that will see it create a hub for its operations in East Java and invest in exploration in the country’s far-flung eastern regions, its Indonesia head says.
Indonesian President Prabowo Subianto’s government, which took office this month, has pledged to bolster energy development, aiming to reverse a decades-long decline in output by the former Organisation of the Petroleum Exporting Countries member.
Yuzaini Md Yusof, head of PETRONAS in Indonesia, said the company was encouraged by recent regulatory steps that made it easier to develop energy projects.
PETRONAS operates four oil and gas blocks in Indonesia – three of them in East Java region, in the western part of the archipelago – and has participating interests in several others.
It plans to create a hub for the three operations in East Java by linking their production facilities and integrating logistic facilities, he said.
“Our first strategy is to grow bigger in the East Java area,” Yusof told Reuters, without sharing investment figures.
“And the next long term plan is for us to expand our business portfolio in eastern Indonesia.”
East Java is expected to benefit from a pipeline project due to be completed in December 2025 that will connect supply from the eastern side of the island to demand in the densely-populated western part, and PETRONAS wants to expand its business there.
Its North Ketapang block is in the exploration phase, while Hidayah field in North Madura II block is expected to produce the first oil by 2027.
PETRONAS is also developing a new gas field in Ketapang block. — Reuters
