Malaysian state energy firm Petronas plans an “aggressive” expansion in Indonesia that will see it create a hub for its operations in East Java and invest in exploration in the country’s far-flung eastern regions, its Indonesia head said.
Indonesian President Prabowo Subianto’s government, which took office this month, has pledged to bolster energy development, aiming to reverse a decades-long decline in output by the former OPEC member.
Yuzaini Md Yusof, head of Petronas in Indonesia, said the company was encouraged by recent regulatory steps that made it easier to develop energy projects.
Petronas operates four oil and gas blocks in Indonesia — three of them in the East Java region, in the western part of the archipelago — and has participating interests in several others.
It plans to create a hub for the three operations in East Java by linking their production facilities and integrating logistic facilities, he said.
East Java is expected to benefit from a pipeline project due to be completed in December 2025 that will connect supply from the eastern side of the island to demand in the densely populated western part, and Petronas wants to expand its business there.
Its North Ketapang block is in the exploration phase, while the Hidayah field in the North Madura II block is expected to produce the first oil by 2027. Petronas is also developing a new gas field in Ketapang block.
