Wedoany.com Report-Aug. 27, China National Offshore Oil Corporation (CNOOC), a state-owned oil and gas company, has strengthened its presence in Asia by securing two exploration blocks in Indonesia. The company’s wholly owned subsidiaries signed production sharing contracts (PSCs) with Indonesia’s SKK Migas, together with EnQuest and Agra, for the Gaea and Gaea II blocks. These are located onshore and offshore in southern Papua Barat Province, near the Tangguh LNG project.
The two exploration blocks cover an area of about 12,000 square kilometers. Under the PSC terms, they include a three-year first exploration stage. Indonesia’s government announced the winning bidders for the blocks in April 2025.
The ownership structure for the new blocks involves several companies. EnQuest holds a 40% operating interest, while Agra has a 20% non-operating interest. The Tangguh partners—BP, MI Berau, ENEOS Xplora, CNOOC Southeast Asia, Indonesia Natural Gas Resources Muturi, and KG Wiriagar Petroleum—together hold 40% non-operating interests. Within this group, CNOOC’s subsidiaries have a 5.56% share in both blocks.
The acquisition strengthens CNOOC’s role in the region, particularly as these blocks are positioned close to Tangguh, one of Indonesia’s most important LNG developments. Saipem recently began fabrication activities for BP’s Tangguh UCC project, marking progress with the first steel-cutting ceremony at its Indonesian yard. This project will involve producing natural gas from the Ubadari field and transporting it to an onshore LNG facility, where CO₂ separation will take place.
CNOOC continues to expand its oil and gas portfolio both domestically and internationally. The company recently announced a hydrocarbon discovery in the Beibu Gulf of the South China Sea, further highlighting its exploration capabilities. At the same time, it is balancing traditional energy production with investment in new energy solutions.
For 2025, CNOOC has allocated up to $19 billion to expand its oil and gas production. In addition, the company is advancing offshore wind, onshore solar, and other lower-emission projects to complement its hydrocarbon business and enhance long-term sustainability.
These steps reflect CNOOC’s dual strategy of securing new reserves while also integrating renewable and low-carbon technologies into its portfolio. By participating in Indonesia’s Gaea and Gaea II exploration efforts, alongside established industry partners, CNOOC reinforces its position in Asia’s energy sector and contributes to developing new sources of natural gas in the region.
The new PSC agreements, combined with ongoing investments, position CNOOC to increase reserves, support energy security, and continue evolving as a global energy player. With exploration in Indonesia progressing and domestic discoveries advancing, the company is building a diverse portfolio that spans conventional oil and gas, renewable energy, and low-carbon technologies.
