Approved! Pertamina and Petronas Sign Purchase Agreement with Shell for 35% Ownership in Masela Block

Jakarta, July 25, 2023 – PT Pertamina (Persero), through its Subholding Upstream, PT Pertamina Hulu Energi (PHE), has signed a purchase agreement to acquire Shell Upstream Overseas Services (I) Limited (SUOS) ownership in the Masela Block. PHE, in collaboration with PETRONAS through PETRONAS Masela Sdn. Bhd. (PETRONAS Masela), will take over 35% ownership of SUOS in the block.

PHE will manage 20% of the ownership, and PETRONAS Masela will manage the remaining 15%. The purchase signing agreement for the Masela Block ownership was carried out by the President Director of PHE, Wiko Migantoro, Executive Vice President & Executive Officer for Upstream of PETRONAS, Datuk Adif Zulkifli, and Director of Finance for Acquisition, Divestment, and NBD Asia Pacific at Shell, Kuo Tong Soo.

The signing took place during the opening ceremony of the Indonesian Petroleum Association (IPA) Convention on Tuesday, July 25, 2023, witnessed by Minister of Energy and Mineral Resources, Arifin Tasrif, Director General of Oil and Gas, Tutuka Ariadji, Head of SKK Migas, Dwi Soetjipto, President Director of Pertamina, Nicke Widyawati, and President & Chief Executive Officer of PETRONAS Group, Tan Sri Tengku Muhammad Taufik.

President Director of Pertamina, Nicke Widyawati, stated that to fulfill the national energy needs, commitment is required to secure the upstream oil and gas supply.

"In addition to managing existing fields, a strategy is needed to develop new fields, one of which is the Abadi Field in the Masela Block," Nicke said.

PHE, as Pertamina's Subholding Upstream, has extensive experience in exploration, development, and deep-sea oil and gas production in Indonesia and abroad. Additionally, through one of its subsidiaries, PHE has a proven track record in the Badak LNG Plant development and operation, as well as domestic and international LNG marketing.

"The capabilities and reliability of PHE provide strong evidence that Pertamina, as a state-owned enterprise, can build partnerships with global partners. In the future, Pertamina hopes to engage in strategic cooperation for business development and other potentials," Nicke added.

Nicke explained that the Masela Block's Abadi Field development has the potential to employ up to 10,000 workers. The Masela Block development is expected to accelerate local area development, creating new job opportunities and absorbing local labor, which will directly impact the economic development in the Eastern part of Indonesia.

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**