Petronas Awards PSC for Offshore Malaysian Block

Petronas awarded a Production Sharing Contract (PSC) for Block SK320 offshore Sarawak to MDC Oil and Gas (SK320) Ltd, a subsidiary of Abu Dhabi owned Mubadala Development Company, and Petronas Carigali Sdn Bhd.

The block spans 5,786 square kilometers and is located in the central part of the Sarawak Basin in water depths ranging from 100 to 200 meters. Previous exploration efforts discovered a number of gas fields in the block. Three of the gas fields namely M5, Biji Sawi and Daun Kari are included in the SK320 PSC.

Under the terms of the PSC, MDC Oil with participating interest of 75 percent, will operate block SK320. Petronas Carigali, the exploration and production arm of Petronas, will own the remaining 25 percent interest.

The PSC commitments for Block SK320 include the acquisition and processing of 2,000 line km of 2D seismic data, 1,000 sq km of new 3D seismic data and drilling of four wildcat wells to a minimum aggregate depth of 11,582 meters. The minimum financial commitment is estimated at US $79.75 million.

The PSC was signed today in Kuala Lumpur. Petronas was represented by its Vice President of Exploration & Production Business Encik Ramlan Abdul Malek; MDC Oil and Gas (SK320) Ltd by its Regional Vice President Mr. Barry J. O'Donnell; and Petronas Carigali by its Managing Director/CEO Datuk Abdullah Karim.