Shell Wins Stake in Sarawak Block

Shell Wins Stake in Sarawak Block
Petronas has awarded Block SK437 offshore Sarawak, Malaysia, to Petronas Carigali Sdn Bhd, Sarawak Shell Berhad, and Petroleum Sarawak Exploration and Production Sdn Bhd.

Petronas has awarded Block SK437 offshore Sarawak, Malaysia, to Petronas Carigali Sdn Bhd (PCSB), Sarawak Shell Berhad (SSB), and Petroleum Sarawak Exploration and Production Sdn Bhd (PSEP), a wholly owned subsidiary of Petroleum Sarawak Berhad. 

The award of the block is expected to bolster exploration activities in the country, particularly off the coast of Sarawak, Petronas highlighted. Block SK437 is located to the southwest of the central Luconia province, which Petronas describes as “prolific”. The block measures 777 square miles in size and resides in water depths of up to 164 feet.

“During its 130 years in Malaysia, Shell and other partners have built a legacy of milestones that contribute to the success of the country’s oil and gas industry,” Mohamed Firouz Asnan, Petronas’ senior vice president of Malaysia petroleum management, said in a company statement.

“It is our hope that this new partnership with PSEP and PCSB in Block SK437 would bring the industry to greater heights through complementary strengths and capabilities,” he added.

“Indeed, this new award is a further testament of Malaysia’s attractiveness as a global investment destination. Under our ‘right asset, right player’ strategy, supported by a progressive fiscal regime, we hope to unlock the full potential of the hydrocarbon resources in Malaysia,” the Petronas representative went on to say.

SSB is the operator for the Block SK437 production sharing contract, with an 85 percent participating interest. PCSB and PSEP each hold a 7.5 percent stake in the asset. Block SK437 is a new addition to Shell’s existing interests in 15 PSCs in Malaysia, of which eight are located off the coast of Sarawak.

In February this year, Petronas awarded Block SB405, off the coast of Sabah, Malaysia, to ConocoPhillips East Malaysia Limited (COPEM), a subsidiary of ConocoPhillips and PCSB. The award of this exploration block is expected to bolster exploration activities off the coast of Sabah following the opening of more block investment opportunities in the country, Petronas noted in a company statement at the time.

To contact the author, email andreas.exarheas@rigzone.com



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