KUALA LUMPUR, July 28 — Petroliam Nasional Bhd (Petronas) has awarded Block SK437 production sharing contract (PSC) offshore Sarawak to Petronas Carigali Sdn Bhd (PCSB), Sarawak Shell Bhd (SSB) and Petroleum Sarawak Exploration and Production Sdn Bhd (PSEP).

PSEP is a wholly-owned subsidiary of Petroleum Sarawak Bhd (Petros).

In a statement, Petronas said the PSC signing was held virtually today and is expected to bolster exploration activities in the country, particularly off the coast of Sarawak.

It said SSB, being the operator of the PSC, held 85 per cent participating interests in the PSC while PSEP and PCSB held 7.5 per cent each.

“Both PCSB’s and PSEP’s interests are carried during the exploration phase,” it said.

It said 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 while the remaining seven are located off the coast of Sabah.

Senior vice president of Malaysia petroleum management Mohamed Firouz Asnan said he hoped the new partnership with PSEP and PCSB in block SK437 would bring the industry to greater heights through complementary strengths and capabilities. 

“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, thus, maximising value for our partners and Petronas as the custodian of the national hydrocarbon resources,” he said.

In a separate statement, Petros group chief executive officer Datuk Sauu Kakok said the company participation in the SK437 PSC would provide an opportunity for PSEP to expand its role in exploration activities off the coast of Sarawak.

Executive vice president, upstream and PSEP director Dr James Foo said the addition of exploration block SK437 PSC to PSEP existing producing ventures would further diversify PSEP portfolio of assets off the coast of Sarawak.

“We look forward to close collaboration with our operating partners to maximise the value of the PSCs,” he added.

Block SK437 is located to the southwest of the prolific Central Luconia province, measuring 2,015 square kilometres in size and in water depths of up to 50 metres.

Besides exploration block SK437 PSC, PSEP also holds interests in MLNG Satu PSC and Kumang Cluster PSC ventures with 20 per cent and 50 per cent equity interest respectively.

Meanwhile, Petronas said potential investors seeking to invest in Malaysia are welcomed to participate in the Malaysia Bid Round 2021 (MBR 2021) which is currently ongoing with the bid submission deadline set on Sept 3, 2021.

Investors can visit https://www.petronas.com/mpm/ for more information on investment opportunities in Malaysia. — Bernama