Papua New Guinea has agreed with Indonesia to co-operate in exploration of potential oil and gas reserves in border areas.
The Jakarta Post reports that Indonesia is shifting its oil and gas exploration focus to its eastern provinces.
Indonesia's Energy and Mineral Resources Minister, Jero Wacik, this week met the PNG Public Enterprises and State Investment Minister, Ben Micah.
They indicated the two countries would establish joint operations to explore oil and gas reserves.
Mr Jero says the border area has a huge amount of unexplored oil and gas reserves and that, economically, it would be easier to jointly explore these resources.
He adds that it is also important to maintain security along the border.
Mr Micah says PNG hopes its national petroleum companies will form a joint venture with Indonesian oil and gas firm PT Pertamina to develop hydrocarbon reserves in the areas.