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Developing Portfolio, Pertamina and Official Partners Manage Block SK510 in Malaysia

28 Feb 2024
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Kuala Lumpur - PT Pertamina Malaysia Exploration Production (PMEP) together with partners 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 was held in Kuala Lumpur on January 23, 2024, by the President Director of PMEP, Fuji Koesumadewi. The event was also attended by the Director of Strategic Planning and Business Development of PT Pertamina Hulu Energi ("PHE"), Danar Dojoadhi, as well as the Executive Vice President and Chief Executive Officer of Upstream PETRONAS, Datuk Adif Zulkifli, along with the Senior Vice President of MPM PETRONAS, Datuk Ir. Bacho Pilong.

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

Block SK510 covering an area of 1,864 km2 located offshore Sarawak, Malaysia, is a working area within the upstream asset management portfolio of PHE, as a Subholding Upstream of Pertamina. This acquisition brings the total to 6 blocks under PMEP management. PMEP, a subsidiary of PT Pertamina International Exploration and Production (PIEP), affiliated with PHE, manages oil and gas (O&G) exploration and production activities in Sabah and Sarawak, Malaysia, under Production Sharing Contract (PSC) contracts. PMEP has Participating Interest in 3 production blocks - SK309 (25.5%), Block SK311 (25.5%), and Block K (24%), 2 exploration blocks - SK510 (25%), SK 314A (25.5%), and 1 development and exploration block - Block H (18% except Rotan Field - 24%).

The Director of Strategic Planning and Business Development of PHE, Danar Dojoadhi, explained that Pertamina continues to strengthen its advantages by seizing opportunities that can 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 O&G resource growth through exploration assets abroad," said Danar.

Furthermore, Danar explained that expanding the working area through new exploration blocks, both domestic and international, is crucial for maintaining the sustainability of fossil energy resources. PHE has also completed the acquisition of O&G blocks in several working areas, including Peri Mahakam & Bunga in the East Indonesia region, East Natuna in the Indonesia-Malaysia-Vietnam border area, and Masela in Maluku.

Datuk Ir. Bacho said, "We have a long-standing relationship with Pertamina even before the birth 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 in the United Nations Global Compact (UNGC) as a member since June 2022 and is committed to the Ten Universal Principles of UNGC in its strategy and operations, as part of the implementation of ESG aspects. Supporting good Governance aspects, PHE is also committed to Zero Tolerance on Bribery by ensuring fraud prevention and ensuring the company is free from bribery. One of them is through the implementation of an Anti-Bribery Management System (ABMS) which has been standardized ISO 37001:2016.

PHE continues to develop prudent and excellent operation management both domestically and internationally professionally to achieve becoming a world-class oil and gas company that is Environmentally Friendly, Socially Responsible, and Good Governance.