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    Petronas signs PSCs for five offshore blocks

Summary

The blocks are located offshore Sabah and Sarawk and were awarded in the Malaysia Bid Round (MBR) 2021.

by: Shardul Sharma

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Petronas signs PSCs for five offshore blocks

Petronas has signed production sharing contracts (PSCs) for five offshore exploration blocks, namely SB412, 2W and X located off the coast of Sabah, and SK439/SK440 located off the coast of Sarawak, the company said on March 23. The contracts were awarded in the Malaysia Bid Round (MBR) 2021.

Block SB412 in Sabah was signed between Petronas, PTTEP HK Offshore and SapuraOMV Upstream, while the PSCs for ultra-deepwater Blocks 2W and X were signed between Petronas, Sabah Shell Petroleum Company, Shell Sabah Selatan and Petronas Carigali. 

The PSC for Sarawak’s Block SK439/SK440 was signed between Petronas, Sarawak Shell and Petroleum Sarawak Exploration & Production. 

“Petronas is pleased that the newly signed PSCs would attract a capital commitment of about 600mn ringgits ($156mn) in exploration activities in Malaysia, reflecting the attractiveness of Malaysia’s hydrocarbon resources potential,” senior vice president of Malaysia Petroleum Management (MPM), Mohamed Firouz Asnan said.

MBR is an annual Malaysia licensing round hosted by MPM which offers investors upstream opportunities, including exploration acreages, discovered resource opportunities and late life producing assets. The MBR 2022 was launched on January 27, offering 14 exploration blocks, six clusters of discovered resource opportunities and one late life asset cluster. 

Petronas, through MPM, manages petroleum arrangements in Malaysia and provides stewardship on upstream petroleum activities.