Santos Acquires 25% Stake in Sabah's Deepwater Block S from Inpex

Inpex Corporation (Inpex) announced Monday that through its wholly-owned subsidiary, Inpex Offshore Northwest Sabah, Ltd. (Inpex Sabah), it has reached an agreement to transfer a 25 percent participating interest in the deepwater Block S (the Block) to Santos, a major Australian oil and gas exploration and production company.

The Block is an offshore block located in East Malaysia, where Inpex Sabah conducts exploration activities as an operator.

The Block covers an area of 221 square miles (574 square kilometers) with a water depth ranging from 656 feet (200 meters) to 4,921 feet (1,500 meters). The Block lies in the Sabah basin where large reserves of oil and natural gas, such as the Kikeh and the Gumusut-Kakap oil fields were discovered.

Inpex acquired the Block as an operator in January 2012 together with Petronas Carigali. After the acquisition of the Block, Inpex Sabah conducted a three-dimensional seismic survey and geological and geophysical studies. Based on the result of the studies, Inpex is planning to drill wildcat wells this year for new discovery of oil and natural gas deposits.

Santos conducts oil and gas exploration and production activities mainly in the Asian and Oceania regions and has extensive business experience in Australia. Inpex and Santos are jointly engaged in many oil and gas exploration and production activities such as the Bayu-Undan Project in the Joint Petroleum Development Area between Australia and Timor-Leste and several exploration permits adjacent to the Ichthys LNG project in the north-western Australia. This agreement with Santos regarding the Block will further strengthen the relationship between INPEX and Santos.

Details of the offshore deepwater Block S, State of Sabah (Borneo Island)

  • Project: Deepwater Block S
  • Acquisition Date: Jan. 17, 2012
  • Area: 221 square miles (574 square kilometers)
  • Location: East Malaysia
  • Water Depth: 656-4,921 feet (200-1,500 meters)
  • Participation Interests: Inpex Offshore North West Sabah, Ltd. - 50 percent (Operator); Petronas Carigali Sdn. Bhd. - 25 percent; Santos - 25 percent

Details of other Malaysian project that Inpex participates in

  • Project: Deepwater Block R
  • Acquisition Date: Jan. 17, 2012
  • Area: 259 square miles (672 square kilometers)
  • Location: East Malaysia
  • Water Depth: 328-4,593 feet (100-1,400 meters)
  • Participation Interests: JX Nippon Oil & Gas Exploration (Deepwater Sabah), Limited - 37.5 percent (Operator); Inpex Offshore South West Sabah, Ltd. - 37.5 percent; Petronas Carigali Sdn. Bhd. - 25 percent


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