BP signs three production sharing contracts in Indonesia

(Alliance News) - BP PLC on Wednesday said it has signed three production sharing contracts in Indonesia, increasing its participation in oil and gas blocks in the country to 11.

The London-based oil major said two of the contracts are for the Bintuni and Drawa exploration blocks near its existing Tangguh LNG operations in Papua Barat, which could support shorter-cycle development opportunities.

BP also confirmed a 49% stake in the INPEX-operated Barong block in East Java, alongside INPEX Corp, which holds 51% and will operate the block.

The agreements were signed with the Indonesian government, represented by SKK Migas, during the Indonesian Petroleum Association Convention & Exhibition 2026.

William Lin, executive vice president for gas & low carbon energy, said: "These agreements demonstrate our ongoing investment in Indonesia's energy security and economic growth. We already have world-class assets in the country, and, subject to success, the proximity of two of these new blocks to our existing infrastructure could support the potential future development and production of these resources."

BP shares were up 0.3% at 565.20 pence in London at midday on Wednesday.

By Eva Castanedo, Alliance News reporter

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