Malaysia Invites Indonesia to Jointly Develop Ambalat and Ligitan-Sipadan Oil and Gas Blocks
Jakarta, CNBC Indonesia – The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) has revealed that the Malaysian government has offered cooperation to jointly manage oil and gas working areas (WK) along the border between the two countries. The offer is seen as opening up development opportunities for several oil and gas blocks located in maritime border areas, including the Ambalat Block and the Ligitan-Sipadan Block.
SKK Migas head Djoko Siswanto explained that the offer came from the state of Sabah through its ministerial representative during a bilateral meeting. The move is regarded as an opportunity for Indonesia to optimise natural resource potential in sensitive areas jointly.
“The Malaysian state of Sabah has also offered cooperation for the development of oil and gas working areas located in the Indonesia–Malaysia border region, such as the Ambalat Oil and Gas Block and the Ligitan-Sipadan Oil and Gas Block,” he explained in a written statement on Monday (13 July 2026).
Djoko said the cooperation offer was conveyed on the sidelines of the signing of an extended contract for the Floating Production Storage and Offloading (FPSO) Bukit Tua facility. The meeting was attended by senior officials from both countries to discuss the continuation of oil and gas operations in the Madura Strait and exploration potential in other areas.
“Thankfully, on 10 July 2026, the signing of the FPSO Bukit Tua contract extension was carried out with Petronas as the contractor; attended by the Finance Minister of the Malaysian state of Sabah, who also serves as Deputy Minister II and Chairman of the SMJ Energy Board of Directors, Datuk Seri Panglima H. Masidi Hajun; the President Director of Petronas; the head of SKK Migas and their staff, among others,” he elaborated.
The move is also seen as capable of strengthening bilateral relations between the two countries, as infrastructure assets such as the FPSO Bukit Tua are jointly owned by Malaysia and an Indonesian company. Cooperation in border areas is expected to provide investment certainty while maintaining security stability in the region.
“This extension was made so that there is no interruption to oil and gas production, and as a guarantee of the continuity of oil and gas production from the Petronas field development projects currently under construction,” he explained.
The field developments to be supported by this infrastructure include the Hidayah, Barokah and Bukit Panjang fields, which play an important role in national oil and gas supply. He expressed hope that collaboration with Malaysia can continue to be enhanced in order to achieve the production targets set by the government.
“Please pray that this FPSO can operate safely, smoothly and securely for the next 10 years,” he concluded.