Petronas Awards 2 Exploration Blocks in Sabah to SapuraKencana-Led JV
Malaysia's national oil and gas company Petroliam Nasional Berhad (Petronas) announced Thursday that it has awarded two Production Sharing Contracts (PSC) for Blocks SB331 and SB332 onshore Sabah to SapuraKencana Energy Sabah Inc, M3nergy Berhad and Petronas Carigali Sdn Bhd.
The award was made after a competitive bidding exercise where Petronas invited bids from upstream companies for these blocks.
Blocks SB331 and SB332, measuring 5,063 square miles (13,114 square kilometers) and 6,923 square miles (17,933 square kilometers) respectively are located in the eastern part of Sabah. There have been minimal activities in the blocks but the presence of oil and gas seeps indicate a probable working petroleum system.
Under the term of both PSCs, SapuraKencana will operate the blocks with participating interest of 70 percent while M3nergy will own up to 25 percent of the equity.
The partners are committed to drill two wildcat wells and acquire 310 line miles (500 line kilometers) of new 2D seismic data in Block SB331 as well as to drill one wildcat well and acquire 62 line miles (100 line kilometers) of new 2D seismic data in Block SB332. In addition, they will also carry out other integrated studies based on existing data for the two blocks.
The PSCs were signed Thursday in Kuala Lumpur and present to sign the contracts were Executive Vice President and CEO Upstream of Petronas Wee Yiaw Hin; President and Group CEO of SapuraKencana Petroleum Berhad, Shahril Shamsuddin; Director of M3nergy Berhad, Sukarti Wakiman; and President and CEO of Petronas Carigali Sdn Bhd, M Anuar Taib.
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