Malaysian company Bumi Armada, through its subsidiary Armada Akia, has signed a production sharing contract (PSC) with Pexco Tarakan and the Indonesian Ministry of Energy and Mineral Resources for an exploration block in the Tarakan Basin, North Kalimantan Province. Under this contract, Bumi Armada will be responsible for supplying a floating production storage and offloading (FPSO) vessel and either a floating liquefied natural gas (FLNG) unit or a gas pipeline for potential development.

Armada Akia holds a majority stake of 51% in the Akia exploration block, while Pexco Tarakan owns the remaining 49%. This block, spanning 8,394 square kilometers, includes two significant oil and gas discoveries: Aster and Tulip.

The Tulip discovery is particularly noteworthy, with an estimated recoverable resource of 860 billion cubic feet (bcf) of gas and 60 million barrels of oil and condensate. Bumi Armada intends to conduct new 3D seismic surveys over the Tulip discovery to assess its potential for fast-track development.

Considering the challenging water depth at the Tulip discovery site, reaching 800 meters, Bumi Armada will provide and operate an FPSO and either an FLNG unit or a gas pipeline for this project, capitalizing on its expertise in managing floating production systems.

Bumi Armada has also recently entered a non-binding agreement with PT Pertamina International Shipping, a subsidiary of Pertamina, and PT Davenergy Mulia Perkasa (DMP), an Indonesian natural gas trading firm. This collaboration allows them to pool resources for the development and commercialization of liquefied natural gas (LNG) from multiple fields in Indonesia.

As part of this agreement, Bumi Armada and Pertamina International Shipping will collaborate on the design, engineering, construction, installation, commissioning, and operation of an FLNG facility. Additionally, they will employ an LNG carrier to transport LNG to areas lacking access to nearby clean energy sources. This initiative aims to enhance Indonesia's energy infrastructure and expand LNG distribution.