BP Expands in Indonesia, Officially Holds Stakes in 11 Oil and Gas Blocks
BP has officially increased its ownership of domestic oil and gas blocks through the signing of three new Production Sharing Contracts (PSCs), expanding its overall participation to 11 oil and gas blocks spread across various regions of Indonesia.
William Lin, BP’s EVP Gas & Low Carbon Energy, explained that the asset additions reflect the company’s long-term commitment to continuing investment in Indonesia’s energy sector.
‘This agreement reflects BP’s long-term commitment to continue investing and supporting Indonesia’s energy resilience and economic growth. We already have world-class assets in Indonesia. If exploration proves successful, the proximity of the two newly acquired blocks to our existing facilities will support the development and production of resources from these two blocks in the future,’ he said in a written statement, cited on Thursday (21 May 2026).
The signing of the contracts is part of Stage II 2025 Stage II Production Sharing Contract (PSC) bid for Migas Working Areas organised by the Ministry of Energy and Mineral Resources (ESDM). The agreement was signed at the Indonesian Petroleum Association Convention & Exhibition (IPA Convex) 2026 and witnessed by Energy and Mineral Resources Minister Bahlil Lahadalia.
‘This year marks BP’s 60th anniversary in Indonesia. Through the dedication of our regional team and a continued focus on safety and operational performance, we hope to continue working with the government and partners to support energy resilience and Indonesia’s development goals going forward,’ he added.
The three new PSCs cover the exploration blocks Bintuni and Drawa in West Papua, and Barong in East Java. In particular, the locations of the Bintuni and Drawa blocks near the Tangguh LNG facility are viewed as advantageous, as they could unlock the potential for field development in a shorter timeframe.
BP’s partners in the Bintuni and Drawa blocks include CNOOC Southeast Asia Limited, MI Berau B.V. (a joint venture between Inpex Corporation and Mitsubishi Corporation) and Indonesia Natural Gas Resources Muturi, Inc. (a unit of LNG Japan Corporation).
Following the signing, BP becomes a 49% partner in the Barong block alongside Inpex Corporation, which acts as the operator with a 51% stake.
In the management of the Barong block, BP will hold a 49% participating interest. Meanwhile, Inpex Corporation will act as operator in the East Java Working Area with a 51% stake.