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    Petronas signs PSC with TotalEnergies, Shell for offshore Block 2K

Summary

The signing of the PSC for Block 2K completes the licensing of the five ultra-deepwater blocks off the coast of Sabah.

by: Shardul Sharma

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Complimentary, Natural Gas & LNG News, Asia/Oceania, Security of Supply, Corporate, Exploration & Production, News By Country, Malaysia

Petronas signs PSC with TotalEnergies, Shell for offshore Block 2K

Petronas has signed a production sharing contract (PSC) with TotalEnergies EP Malaysia (TE), Petronas Carigali (PCSB), Sabah Shell Petroleum Company (SSPC) and Shell Sabah Selatan (SSS) for Block 2K, an ultra-deepwater block located off the coast of Sabah, it said on October 13.

Under the PSC terms, TE, a wholly owned subsidiary of France-based TotalEnergies, will be the operator with a 34.9% participating interest. PCSB holds a 40% participating interest while the remaining 25.1% is equally split between the other two partners, SSPC and SSS.

Petronas senior vice president Mohamed Firouz Asnan said the signing of the PSC for Block 2K completes the licensing of the five ultra-deepwater blocks off the coast of Sabah, along the newly identified Oligo-Miocene carbonate trend proven by Tepat-1 oil discovery in Block N in 2018. Block 2V was signed last year followed by Blocks 2W and X early this year.

“A total of four wells are expected to be drilled in these ultra-deepwater blocks in 2022 and 2023, to explore within this emerging hydrocarbon province,” he added.

These five blocks now come with available 3D seismic data from a recent multi-client survey.