Under the terms of the PSC, the three parties have formed a joint venture company, PCPP Joint Operating Company (PCPP), to operate the block. Petronas Carigali Sdn Bhd, a wholly-owned exploration and production subsidiary of Petronas, has a 40 percent equity in PCPP, while Pertamina and PetroVietnam Investment & Development Company (PIDC), which is a unit of PetroVietnam, have a 30 percent stake each.
Block SK305 is located in water depth of 150 meters in the Balingian Province offshore Sarawak. Covering an area of about 15,164 square kilometers, the block was previously operated by Shell until 1999. Under the PSC signed today, the operators are required to drill two firm and two optional exploration wells as well as acquire and process new 2D and 3D seismic data on the block. The minimum financial commitment for the block is RM39 million.
The signing of the PSC for Block SK305 signifies another very significant step towards fostering a more meaningful and mutually beneficial partnership between Petronas, PetroVietnam and Pertamina. In January last year, the three counterparts were awarded two offshore exploration blocks in Vietnam, namely Blocks 10 and 11.1, operated by Con Son Joint Operating Company whose equity holders are PIDC (40 percent), Pertamina (30 percent) and Petronas Carigali Overseas Sdn Bhd (30 percent).
The Tripartite Cooperation Arrangement will also facilitate the transfer and exchange of knowledge and technology between the three partners which will assist in enhancing and upgrading of skills and expertise. It is set to pave the avenue for more joint cooperation in the petroleum exploration and production activities between Petronas, PetroVietnam and Pertamina in Malaysia, Vietnam and Indonesia. After having secured exploration blocks in Vietnam and Malaysia, the three parties are now undertaking joint evaluation of acreages in Indonesia and expect to conclude a similar contract in the near future.
At the PSC signing ceremony in Kuala Lumpur, Petronas was represented by its President and Chief Executive Officer Tan Sri Dato' Mohd Hassan Marican, Pertamina by its President Director and Chief Executive Mr. Baihaki Hakim, and PIDC by its Managing Director Mr. Do Van Hau.
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