Petronas Advances Serpang Block Exploration with 3D Seismic Tender

Malaysia's Petronas is actively pursuing hydrocarbon potential in Indonesia's Serpang block, awarded in May 2025, by launching a tender for a 3D marine seismic survey. The block, covering approximately 8,498 square kilometers offshore East Java in water depths of 10 to 100 meters, is a key part of Petronas's global upstream portfolio. The operator's minimum commitment for the initial three-year exploration term includes geological and geophysical studies, plus the acquisition and processing of 400 square kilometers of 3D seismic data.

Tender Details and Workscope

Petronas has invited companies to prequalify for the Saghara seismic survey on the Serpang block, valued at a minimum of $20.5 million for a one-year firm contract with a one-year option. The contract requires a minimum local content of 40%. The workscope, commencing in the third quarter of 2026, includes providing all vessels, seismic equipment, personnel, consumables, and operational services. The contractor must supply at least one offshore support vessel and two chase vessels, with an additional chase vessel on standby at all times. Before the seismic shoot, a bathymetric survey in shallow waters is required, which may lead to boundary revisions while maintaining the overall program size.

Cabotage Policy and Vessel Requirements

Petronas initially invites bidders to submit Indonesia-flagged vessels for the survey. If no suitable Indonesia-flagged vessels are offered, fail evaluation, or a price agreement cannot be reached, the tender will be declared "failed." A re-tender will then invite participants to submit both Indonesia-flagged and foreign-flagged vessel candidates. If no Indonesia-flagged vessel passes prequalification, the process will proceed with foreign-flagged vessel candidates only, in line with Indonesia's cabotage policy allowing foreign vessels in specialized industries like oil and gas when local alternatives are unavailable.

Partnership and Future Exploration Plans

Petronas operates the Serpang block with a 51% equity stake, alongside partners Inpex of Japan (35%) and SK Earthon of South Korea (14%). Inpex has stated that the partners anticipate an early transition to development and production if exploration is successful. While exploration drilling is expected for a second exploration term, there is no restriction on spudding a wildcat well before May 2028.