Petronas plans 'aggressive' expansion in Indonesia

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Malaysian national oil company Petronas is reportedly planning an "aggressive" expansion in Indonesia.

The expansion will reportedly see the creation of a hub for its operations in East Java and investments into exploring the country's eastern regions.

This is according to Petronas Indonesia head Yuzaini Md Yusof who said that the company was encouraged by recent regulatory steps that made it easier to develop energy projects, reported Reuters.

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Petronas currently operates four oil and gas blocks in Indonesia consisting of three in the East Java region and one in the western part of the archipelago.

Petronas' strategy is to grow bigger in the East Java area and to expand its business portfolio in eastern Indonesia as part of its long-term plan, Yusof reportedly said.

At the same time, East Java is reportedly expected to benefit from a pipeline project due to be completed in December 2025.

Meanwhile, Petronas is reportedly developing a new gas field in Ketapang block. The Hidayah field in North Madura II is also expected to produce the first oil by 2027.

In tandem, the oil giant has reportedly signed a production sharing contract for the Bobara block situated near West Papua. It will be Petronas' first deep-water project in Indonesia.

This project is very high risk and is not something that many operators have gone through, Yusof reportedly said.

Outside of oil, a Malaysian renewable energy company, reNIKOLA, is reportedly planning to invest over RM1.05 billion (IDR 3.70 trillion) to develop 40 compressed biomethane gas projects in Indonesia.

The projects will be developed with PT Perkebunan Nusantara IV, a division of Indonesia's state-owned agricultural enterprise Perkebunan Nusantara, according to The Star.

In addition, reNIKOLA reportedly announced that it signed an agreement with Perkebunan Nusantara IV to build, own, operate and transfer a compressed biomethane gas project in North Sumatra.

On top of that, the company reportedly said it would collaborate further with Indonesian state-owned companies such as Perusahaan Gas Negara and Perusahaan Listrik Negara to support Indonesia's goal of achieving a 26% renewable energy mix by 2030.

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