Petroliam Nasional Berhad announced Wednesday that Malaysia now has 100 active production sharing contracts (PSC), a significant achievement and milestone in the country’s oil and gas upstream operation, following the award by Petronas of its latest PSC Dec. 11.
The PSC, awarded to Salamander Energy Malaysia Limited and Petronas Carigali Sdn Bhd (PCSB), was for Block PM322, which is the first exploration acreage located in the Straits of Malacca to have been awarded by Petronas since 1992.
Under the terms of the PSC, Salamander Energy Malaysia, a UK-based first-time upstream player in Malaysia, will operate the block with a 85 percent equity, while partner Petronas Carigali owns the remaining 15 percent interest.
The two parties are committed to drill one exploration well in the block to a minimum depth of 4,593 feet (1,400 meters) and to acquire and process 231 square miles (600 square kilometers) of new 3D seismic data. The minimum financial commitment for the block is $18 million.
The signing of the PSC took place in Kuala Lumpur where Petronas was represented by its Vice President of Petroleum Management Ramlan Abdul Malek. Salamander Energy Malaysia was represented by its Chief Operating Officer Mike Buck while Petronas Carigali was represented by Vice President and CEO of Petronas Exploration Effendy Cheng Abdullah.
Speaking at the event, Ramlan said, “The signing of the Block PM322 PSC means that Malaysia now has 100 active PSCs, the most it has ever had at any one time since the PSC system was introduced in Malaysia 37 years ago.”
“Considering Malaysia’s ‘matured’ basins, reaching 100 active PSCs is testimony to the country’s successful petroleum resource management as it demonstrates our ability to garner continued interest from oil and gas players,” he said, adding that Petronas now has 27 PSC contractors participating in the country’s upstream industry on a variety of fiscal arrangements.
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