BAKU, Azerbaijan, October 1. Japan’s INPEX
Corporation has acquired 50-percent participating interests in
Indonesia’s Agung I and Agung II exploration blocks offshore
Eastern Java, strengthening its exploration portfolio in the
country, INPEX said on Oct.1.


The interests were acquired through INPEX’s wholly owned
subsidiaries, INPEX WEST AGUNG, LTD. and INPEX EAST AGUNG, LTD.,
from bp Agung I Limited and bp Agung II Limited, respectively,
INPEX said on Oct. 1.


Following the transactions, INPEX holds a 50-percent interest in
each block, while bp’s respective subsidiaries retain 50 percent
and continue as operators.


The Agung I block covers 6,656 square kilometers, with water
depths ranging from 100 to 2,000 meters. It is located offshore
Bali and East Java. The Agung II block covers 7,969 square
kilometers, also with water depths of 100 to 2,000 meters, and
extends across offshore areas of South Sulawesi, West Nusa Tenggara
and East Java.


INPEX said the blocks are located in an area where multiple oil
and gas fields have already been discovered. Their proximity to the
Barong and Serpang blocks, in which INPEX also holds interests, is
expected to allow the company to pursue broader, area-wide
exploration targeting multiple geological plays.


The company also expects successful exploration to potentially
support efficient development and production, given anticipated
medium- to long-term energy demand in the surrounding
provinces.


Expansion of INPEX's Eastern Java portfolio


The acquisition expands a growing INPEX presence offshore
Eastern Java.


In May 2026, INPEX and bp were awarded the Barong exploration
block following Indonesia’s 2025 second open bidding round. INPEX
holds a 51-percent interest and operates the
8,499.88-square-kilometer block, while bp holds 49 percent. The
block is located offshore East Java, where several oil and gas
fields have already been discovered.







INPEX also holds a 35-percent interest in the Serpang block,
alongside Petronas subsidiary PE Serpang, which holds 51 percent,
and SK earthon subsidiary EOS, which holds 14 percent. The Serpang
block is under exploration and is located about 200 kilometers east
of Surabaya, the capital of East Java.


This concentration of exploration interests gives INPEX a
broader position across offshore Eastern Java and allows the
company to assess exploration opportunities across adjacent areas
rather than treating individual blocks in isolation.


The Indonesian Ministry of Energy and Mineral Resources
originally awarded Agung I and Agung II to bp during the second
stage of the country's 2021 direct oil and gas bidding round.


According to the ministry, Agung I was awarded to bp Exploration
Indonesia Limited, while Agung II was awarded to bp West Papua I
Limited. The initial three-year firm commitments included
geological and geophysical studies and acquisition and processing
of 2,000 kilometers of 2D seismic data for each block. The
Indonesian government has previously identified Agung I and Agung
II among areas considered to have significant oil and gas
potential. The Ministry of Energy and Mineral Resources said the
blocks were part of Indonesia's focus areas for upstream oil and
gas development amid declining domestic production and rising
energy demand.


Supporting INPEX's gas and LNG strategy


INPEX said the acquisition is expected to contribute to the
expansion of its natural gas and LNG business in Southeast Asia, in
line with the company's INPEX Vision 2035, announced in February
2025. The company described Indonesia as an important area for
strengthening its business foundation and said it would continue to
pursue opportunities in the country.


INPEX is Japan's largest exploration and production company,
with oil and gas projects in multiple countries. Alongside its
conventional upstream business, the company is developing
lower-carbon businesses including carbon capture and storage (CCS),
hydrogen and integrated power supply.


For Indonesia, the expansion comes as the government seeks to
attract further investment into upstream exploration and develop
new oil and gas resources. The Ministry of Energy and Mineral
Resources has highlighted improved fiscal terms and other
incentives as part of efforts to stimulate exploration and
production.