Martin Bagya Kertiyasa, Jakarta – Pertamina Hulu Energi (PHE) and Malaysia's state-owned energy giant Petronas have signed a farm-out agreement (FOA) under the production sharing contract (PSC) for the Bobara Block, marking a new chapter in regional energy collaboration.
"This is more than a contractual milestone. It reflects the tangible partnership between Malaysia and Indonesia in the energy sector, showcasing our complementary capabilities and shared responsibility to strengthen regional energy security and advance sustainable development," PHE President Director and CEO Simon Aloysius Mantiri said on Monday.
A farm-out agreement allows one oil and gas company to transfer part of its ownership rights in a block to another in exchange for the latter's commitment to carry out specific work activities such as exploration, seismic surveys, or drilling.
Under the Bobara partnership, PHE will hold a 24.5 percent participating interest alongside Petronas and TotalEnergies. The Bobara operation area, located in the ultra-deepwater of West Papua, covers a total area of 8,444.49 square kilometers and is estimated to hold 6.8 billion barrels of oil equivalent (BBOE) in potential reserves.
Simon also called for Petronas' support in facilitating Pertamina's business expansion in Malaysia, aligning with Petronas' long-term portfolio growth in Indonesia. The collaboration may open doors for Pertamina to assume operatorship in the Balingian PSC and other Malaysian blocks.
PHE President Director Awang Lazuardi said the Bobara partnership demonstrates strong synergy and shared commitment among Pertamina, Petronas, and TotalEnergies.
"The Bobara PSC aligns with PHE's strategic focus on exploring and developing new opportunities in frontier areas," Awang said.
The 30-year PSC for the Bobara exploration block was signed in May 2024, with a firm commitment worth $16.92 million, covering three geological and geophysical (G&G) studies, a 2,000-square-kilometer high-resolution seismic survey, and a $50,000 signature bonus.
Prior to PHE's entry, TotalEnergies had already acquired a 24.5 percent participating interest in the block from Petronas, formalized through a separate FOA signed during the Energy Asia 2025 event in Kuala Lumpur.