Petronas Enters into Onshore Petroleum PSC with RH Petrogas
Singapore-listed RH Petrogas disclosed Thursday that the company through its wholly-owned subsidiary, RHP (Mukah), has entered into a petroleum production sharing contract (PSC) with Malaysia’s state-owned Petronas for Block SK 331, onshore Sarawak.
The partnership, with 80 percent interest held by RH Petrogas, marks the latter’s entry into Malaysia’s petroleum industry.
Under the PSC, RH Petrogas is committed to a three-year work program which includes seismic reprocessing, new seismic acquisition, exploration drilling and specialized geological and geophysical studies.
The block lies across 4,479 square miles (11,600 square kilometers), which overlaps into the area of the mammoth Bintulu liquefied natural gas (LNG) terminal. The LNG facility, part of the Petronas LNG complex, has an annual production capacity of 25.7 million tonnes per annum.
Commenting on the company’s contract win, RH Petrogas’s Chief Executive Officer, Dr Tony Tan, said in a statement that the project is in line with RH Petrogas’ plan to grow its exploration and production business in the region.
The RH Petrogas-Petronas contract follows closely on the heels of a recent string of oil and gas investments which Malaysia announced as part of its long-term development plan for its oil and gas sector.
Petronas reported on Nov. 27 that it inked a PSC with Shell Malaysia to explore for oil and gas on Block SK319, offshore Sarawak. The government-backed company also announced on the same day that it discovered two major gas reserves – which combined could hold over four trillion cubic feet of natural gas reserves – offshore Sarawak.
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