Malaysia's Bumi Armada has submitted a bid for the Jalu production sharing contract (PSC), a block offered in Indonesia's latest licensing round located in the Andaman Sea. The company believes the block, with an estimated resource potential of 2.9 trillion cubic feet of gas, can be developed using a gas floating production, storage and offloading (FPSO) vessel.

Jalu PSC Details and Strategic Position

The 3942.6-square-kilometre Jalu working area requires a minimum commitment of geological and geophysical studies plus at least 500 square kilometres of 3D seismic data acquisition during a three-year exploration term. A signature bonus of at least $300,000 is also required. Bumi Armada holds the right of first refusal for this former joint study agreement asset and has begun discussions with potential partners. If secured, Jalu would become the company's third Indonesian offshore block, following Akia and Kojo, and could be its first sanctioned FPSO project within two to three years.

Corporate Strategy and Expertise

The company's strategy is to develop oil and gas discoveries by utilizing floating production systems like FPSOs or FLNG facilities, leveraging its core operational expertise. It plans to retain only a minority interest in the hydrocarbon fields themselves. For its targeted offshore assets, Bumi Armada intends to source strategic partners for FPSO-centred developments and is open to either operating or owning the FPSOs depending on the project. These FPSO opportunities are expected to be pursued outside conventional competitive tenders, via strategic partnerships or direct negotiation.

Portfolio and Project Timeline

Beyond Jalu, Bumi Armada is advancing its other Indonesian assets. On the Akia PSC, a 750-square-kilometre 3D seismic survey was completed this year, with processing results expected in early 2026; a final investment decision (FID) is estimated for 2028 or 2029. For the Kojo PSC, where FID could be as late as 2030 due to its distance from existing infrastructure, the company is discussing initial technical studies with the regulator. The company's upstream move is supported by the experience of its chief executive, who has a background managing Indonesian offshore assets.

Broader FPSO and Floter Pursuits

In addition to its owned blocks, Bumi Armada is actively chasing FPSO tenders for other projects in 2025, including Tuna and Tangkulo offshore Indonesia. It is currently performing front-end engineering and design work for the Tangkulo floater. The company has also completed pre-FEED studies for a carbon dioxide floating storage and injection unit for a CCS project offshore Malaysia. Bumi Armada is primarily interested in lease and build and operate contract models and has opted not to participate in engineering, procurement, construction and commissioning contracts where it cannot own or operate the vessel.