Zarubezhneft to Pull Out from Tuna Block

Russian oil and gas company Zarubezhneft plans to divest its stake in the Natuna Islands' Tuna Block gas project. This decision follows complications arising from sanctions imposed by the European Union and the UK, as stated by their British partner, Harbour Energy. The sanctions have hindered the joint project's development.

“ZN [Zarubezhneft] Russia farming out the project is underway. Harbour Energy will seek a new partner, although the identity remains unknown,” Benny Lubiantara, Deputy for Exploration, Development, and Working Area Management of the Upstream Oil and Gas Business Regulatory Task Force (SKK Migas) said on Tuesday.

The collaboration between Zarubezhneft and Harbour Energy aimed to develop an offshore gas field situated off the Indonesian coast in the South China Sea. However, the progress of the project has been affected by EU and UK sanctions against Russia, which have limited their ability to provide certain services to Russian entities. These sanctions were imposed in response to Russia's invasion of Ukraine, which Moscow referred to as a special military operation.