JAKARTA: Malaysian state energy company Petronas plans an “aggressive” expansion in Indonesia that will allow it to create a hub for its operations in East Java and invest in exploration in the most remote areas of the east of the country, its Indonesian leader said on Monday.

The government of Indonesian President Prabowo Subianto, who took office this month, has pledged to support energy development, aiming to reverse a long-running decline in output at the former OPEC member. for decades.

Yuzaini Md Yusof, head of Petronas Indonesia, said the company was encouraged by recent regulatory measures that have made it easier to develop energy projects.

Petronas operates four oil and gas blocks in Indonesia, including three in the East Java region in the west of the archipelago, and participates in several others.

It plans to create a hub for the three operations in East Java by connecting their production facilities and integrating logistics facilities, he said.

“Our first strategy is to expand in the East Java region,” Yusof told Reuters, without sharing investment figures. “And the next long-term plan is to expand our business portfolio in eastern Indonesia.”

East Java is set to benefit from a pipeline project due to be completed in December 2025 that will connect supply from the eastern part of the island to demand from the densely populated western part, and Petronas is keen to expand its operations there. activities.

Its North Ketapang block is in the exploration phase, while the Hidayah field in the North Madura II block is expected to produce first oil by 2027. Petronas is also developing a new gas field in the Ketapang block.

“With this connection of this infrastructure project, it has created attractiveness for operators and businesses that work in the East Java region,” Yusof said.

In eastern Indonesia, Petronas has a 15 percent stake in the Masela gas project and this year signed a production sharing contract for the Bobara block off West Papua.

Bobara, which the government estimates has 6.8 billion barrels of oil equivalent, will be Petronas’ first deepwater project in Indonesia as operator. Petronas is exploring the possibility of bringing in a partner for the block, Yusof said.

“These two block acquisitions reaffirm our commitment to unlocking the potential of the eastern area of ​​Indonesia, where most of this area is border, which presents a very high risk and few operators have been there,” Yusof said.