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.
