SPT Energy (HKG:1251) said its Indonesian unit PT Cipta Niaga Gemilang signed an operation agreement with Pioneer Oil Indonesia to jointly develop oil fields in the Jabung Tengah Block, according to a Sept. 26 Hong Kong bourse filing.

Shares of the firm were up nearly 2% in Monday late-morning trade.

Under the agreement, Pioneer Oil Indonesia will fund up to $200 million over three years for exploration, development, and production, while SPT has no capital contribution obligations.

Profits from any successful output will be split equally between the two parties.

The company said the deal will provide funding support to accelerate exploration of the block and leverage the expertise of both firms.