BP Awarded Two Exploration Blocks in Indonesia

BP confirmed today that it has been awarded two oil and gas production sharing contracts (PSCs) by the Government of Indonesia. The company has been awarded 100 per cent interests in the offshore West Aru I and II PSCs in the Arafura Sea, Indonesia.

The West Aru I and II PSCs are located approximately 500 kilometres southwest of the BP-operated North Arafura PSC and 200 km west of the Aru island group, in the Maluku province of Indonesia. The West Aru I PSC covers an area of approximately 8,100 square kilometres and the West Aru II PSC covers an area of approximately 8,300 square kilometres. The two blocks have water depths ranging between 200 metres and 2,500 metres. BP expects to commence seismic operations in these blocks in the near future.

“In the past two years BP has deepened its position in Indonesia through access to four coalbed methane PSCs in Kalimantan and three conventional gas blocks in Papua. These two new blocks are strong additions to this portfolio and will benefit from BP’s expertise in deepwater exploration. We appreciate the continued support and confidence of the Government of Indonesia,” said William Lin, BP’s Regional President for Asia Pacific.

Including the award of these blocks, BP has gained access to 69 new licence blocks in 11 countries around the world since October 2010, including the Kalimantan coalbed methane and North Arafura blocks in Indonesia. The company plans to double its spend on exploration worldwide over the next few years.

Notes to editors:

-- BP has over 35 years experience in Indonesia and is one of the largest foreign investors in the country. Activities are dominated by its exploration and production business, notably the Tangguh LNG operations in Papua Barat province.
-- BP was awarded a 100 per cent interest and operatorship of the North Arafura PSC in November 2010. Seismic operations are scheduled to commence on the block in 2012. In 2009 BP also acquired a 32 per cent working interest in the West Papua I and III from operator Chevron.
-- BP was awarded four CBM PSCs in Central Kalimantan in April 2011:
* The Tanjung IV PSC, operated by Pertamina, where BP holds a 44 per cent working interest. Pertamina holds the other 56 per cent interest in the PSC.
* The Kapuas I, II and III PSCs are operated by BP with a 45 per cent working interest, the remaining 55 per cent interest is held by co-owner Sugico.