Jakarta. Petrosea (IDX: PTRO) recently signed a mining service agreement with Bara Prima Mandiri (BPM) and Niaga Jasa Dunia (NJD). 

The agreement, which is worth approximately Rp 4.03 trillion, got signed on Feb. 26. According to PTRO’s Corporate Secretary Anto Broto, Petrosea acts as the mining services contractor. BPM holds the mining business license for production operations (IUP-OP). NJD is the company authorized by BPM to operate the mine.

“The nature of the relationship between the parties entering into the contract does not have affiliate relations. Pursuant to the term sheet executed by the parties, the agreement shall become effective as of the term sheet’s effective on 5 November 2024 until 31 December 2032,” Anto wrote in an information disclosure document. 

The estimated overproduction from this deal stands at 135.46 million bank cubic meters (BCM). The partnership will also see a coal production of 7.53 million tons. According to Anto, PTRO had acquired this agreement as part of its long-term strategy to increase added value. 

“[This contract] will also provide a positive impact to the continuity of [PTRO] or the company’s business and improve its financial and operational performance,” Anto said.