Petronas Awards PSCs for 6 Blocks Offshore Malaysia
Petroliam Nasional Berhad (Petronas) has awarded production sharing contracts (PSCs) for six exploration blocks and one Discovered Resource Opportunities (DRO) cluster marketed under the Malaysia Bid Round 2023 (MBR 2023).
The round is expected to garner more than $0.27 billion (MYR 1.3 billion) worth of capital investment in the country in the form of exploration work activities, Petronas said in a news release Tuesday.
The seven new PSCs were awarded to Petronas Carigali Sdn. Bhd., E&P Malaysia Venture Sdn. Bhd. (EPMV), Petroleum Sarawak Exploration & Production Sdn. Bhd. (PSEP), SMJ Energy Sdn. Bhd., Inpex Malaysia E&P, PT Pertamina Malaysia Eksplorasi Produksi, Jadestone Energy (PM) Inc., Sarawak Shell Bhd., and E&P O&M Services Sdn. Bhd. (EPOMS).
The blocks under the PSCs span across three regions in offshore Malaysia comprising two blocks in offshore Peninsular Malaysia, three blocks off the coast of Sarawak, as well as one exploration block and one DRO cluster situated off the coast of Sabah, according to the release. Block PM342 was awarded to Petronas Carigali and EPMV; Block PM 428 to Jadestone Energy and Petronas Carigali; Block SK330 to Petronas Carigali, EPMV and PSEP; Block SK510 to Petronas Carigali, INPEX, Pertamina, and PSEP; Block 5E to Shell, Petronas Carigali, and PSEP; Block SB403 to Petronas Carigali, EPMV, and SMJ Energy; and the Bambazon Cluster to EPOMS.
“This is a great start to 2024. The award of the seven PSCs from MBR 2023 is a testament to the investors’ confidence in Malaysia as a promising E&P [exploration and production] investment destination,” Petronas Senior Vice President of Malaysia Petroleum Management (MPM) Datuk Ir. Bacho Pilong said.
“With these awards, all exploration blocks offshore Sarawak Basin and Northwest Sabah Basin have been fully licensed. Similarly in Peninsular Malaysia, we are pleased to see the ever-growing demand in its proven basins, which are supported by well-established and easily accessible infrastructure”, Pilong added. “Collaborative efforts between Petronas and industry players have played a pivotal role in attracting investments and fostering economic growth in the country”.
Petronas also launched the Malaysia Bid Round 2024 (MBR 2024), offering five exploration blocks and five clusters of DRO to potential investors. The event was attended by more than 50 oil and gas companies, government agencies, foreign trade attachés, and energy market consultants, the state-owned company said.
The five exploration blocks are in emerging basins, namely Langkasuka Basin in the Straits of Melaka, Semporna and Sandakan Basins off the eastern coast of Sabah, where the newly acquired multi-client data improves subsurface imaging and “offers a fresh look at multiple geological plays with large potential”, according to the release.
The three DRO clusters offered are within the shallow waters of Peninsular Malaysia and Sabah, and the two DRO clusters are within the deepwater realm of Sabah, located nearby existing facilities and enabled for quick monetization, Petronas noted.
Petronas describes itself as the country’s oil and gas industry shaper and investment enabler that steers upstream petroleum activities in Malaysia, through its subsidiary MPM. The company added that the development of these resources is aligned with its efforts in ensuring energy security, including initiatives to create a more sustainable upstream industry.
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