News

Kuala Lumpur - PT Pertamina Malaysia Eksplorasi Produksi (PMEP), along with its partners, has successfully won the bidding for exploration Block SK510 through the Malaysia Bid Round (MBR) 2023. MBR is a series of bidding activities held annually by Malaysia Petroleum Management (MPM) PETRONAS, the body responsible for oil and gas resources in Malaysia.

The signing ceremony took place in Kuala Lumpur on January 23, 2024, led by PMEP's CEO, Fuji Koesumadewi. Also present at the event were Danar Dojoadhi, Director of Strategic Planning and Business Development at PT Pertamina Hulu Energi (PHE), Datuk Adif Zulkifli, Executive Vice President and Chief Executive Officer of Upstream at PETRONAS, and Datuk Ir. Bacho Pilong, Senior Vice President of MPM PETRONAS.

The Participating Interest (PI) holders in Block SK510 include PETRONAS Carigali Sdn. Bhd., acting as the operator with a 40% PI, PMEP and INPEX Malaysia E&P SK510 Sdn. Bhd., each holding a 25% PI, and Petroleum Sarawak Exploration & Production Sdn. Bhd. holding the remaining 10% PI.

Block SK510, spanning 1,864 km2 and located offshore Sarawak, Malaysia, is part of the asset management portfolio of PHE, a Subholding Upstream of Pertamina. This acquisition brings the total number of blocks managed by PMEP to six. PMEP, a subsidiary of PT Pertamina Internasional Eksplorasi dan Produksi (PIEP), affiliated with PHE, manages oil and gas exploration and production activities in Sabah and Sarawak, Malaysia, under Production Sharing Contract (PSC) agreements. PMEP has Participating Interest in three production blocks - SK309 (25.5%), Block SK311 (25.5%), and Block K (24%), two exploration blocks - SK510 (25%) and SK 314A (25.5%), and one development and exploration block—Block H (18% except for Rotan Field – 24%).

Danar Dojoadhi, Director of Strategic Planning and Business Development at PHE, explained that Pertamina continues to strengthen its competitive advantage by seizing opportunities that support the company's business growth by implementing good Environmental, Social, and Governance (ESG) principles. "We believe that managing Block SK510 can strengthen PHE's footprint in Malaysia in an effort to achieve the company's targets by increasing oil and gas resources through exploration assets overseas," Danar emphasized.

Furthermore, Danar elaborated that expanding the working area through new exploration blocks, both domestically and internationally, is crucial to maintaining the sustainability of fossil energy resources. PHE has also completed the acquisition of oil and gas blocks in several working areas, including Peri Mahakam & Bunga in East Indonesia, East Natuna in the Indonesia-Malaysia-Vietnam border area, and Masela in Maluku.

Datuk Ir. Bacho said, "We have had a long-term relationship with Pertamina even before the establishment of PETRONAS, 50 years ago, and today I am pleased to see that Pertamina continues to expand its portfolio in E&P Malaysia. I hope that this joint effort will continue to maximize the untapped potential in these blocks to support the energy transition by building a more sustainable upstream industry."

PHE has been registered with the United Nations Global Compact (UNGC) as a member since June 2022 and is committed to the Ten Principles of the UNGC in its strategy and operations as part of ESG implementation. Supporting good Governance aspects, PHE is also committed to Zero Tolerance on Bribery by ensuring fraud prevention and ensuring that the company is free from bribery. One of these measures is the implementation of the Anti-Bribery Management System (SMAP) which has been standardized to ISO 37001:2016.

PHE continues to develop professional and prudent operation management both domestically and internationally to achieve becoming an environmentally friendly, socially responsible, and good governance world-class oil and gas company.