CNOOC Limited's subsidiaries have formally signed two Production Sharing Contracts (PSCs) for the Gaea and Gaea II exploration blocks in Indonesia.
CNOOC Limited has officially cemented its expansion in Indonesia's oil and gas sector with the signing of two Production Sharing Contracts (PSCs) for the Gaea and Gaea II exploration blocks. The agreements, which were entered into by the company's wholly owned subsidiaries, mark a significant step following the Indonesian government's confirmation of winning bidders in April 2025. This development underscores CNOOC's ongoing strategy to strengthen its presence in key global energy markets and diversify its exploration portfolio.
The contracts were finalized with Indonesia's upstream oil and gas regulator, SKK Migas, along with other consortium partners, including subsidiaries of the existing Tangguh partners, EnQuest, and Agra. This collaborative venture targets two expansive blocks spanning approximately 12,000 square kilometers, with areas located both onshore and offshore in the southern part of Papua Barat Province. The location is strategically significant due to its proximity to the operational Tangguh LNG project, which could offer valuable logistical and operational synergies should the exploration efforts prove successful.
Under the terms of the PSCs, the initial exploration period is set for three years, during which the partners will conduct seismic studies and potential drilling to assess the blocks' hydrocarbon potential. This initial phase is a critical step in determining the viability of future development and investment.
The ownership structure of the joint venture is divided among the partners. EnQuest holds the largest share, with a 40% operating interest, placing it in charge of the day-to-day operations and project management. The Tangguh partners, a group that includes BP Exploration Indonesia Limited, MI Berau B.V., ENEOS Xplora Inc., CNOOC Southeast Asia Limited, Indonesia Natural Gas Resources Muturi Inc., and KG Wiriagar Petroleum Ltd., collectively hold a 40% non-operating interest. CNOOC’s wholly owned subsidiaries hold a 5.56% stake within this group, reflecting its strategic involvement without taking on a direct operating role. The remaining 20% non-operating interest is held by Agra.
This move is part of CNOOC's broader commitment to sustainable growth and its role in meeting global energy demands. By participating in this joint venture, the company aims to leverage its technical expertise and financial resources to contribute to Indonesia's energy security and economic development. The partnership model also spreads the risks and costs associated with the exploration phase, making the project a balanced and collaborative effort among experienced industry players. The successful execution of these contracts represents a positive step for all parties involved, paving the way for potential future discoveries that could enhance the region's energy output.
