IPC agrees production sharing contract extension with Petronas

International Petroleum Corporation (IPC) has signed a letter of agreement with Petronas for the extension of the Block PM 307 Production Sharing Contract (PSC) covering the Bertam Field offshore Peninsular Malaysia.

Source: International Petroleum Corporation

IPC Malaysia is the operator and holds a 90 per cent participating interest and IPC SEA Holding holds a 10 per cent participating interest in the PM 307 PSC.

With the letter of agreement, the PSC is extended from 15 August 2025 to 14 August 2035.

For the nine months that ended on 30 September, IPC said it had produced an average of 5,150 barrels of oil per day from the Bertam Field.

As a result of the continuation of the contract, the company estimates increased proved plus probable (2P) reserves of approximately 3.0 million barrels of oil in respect of the field as of 31 December 2022.

IPC added that it had, in connection with the extension, agreed to review further potential infill drilling opportunities in, and conduct studies on, the PM 307 PSC area.

“We are very pleased to announce that Petronas has approved the ten-year extension of the PM 307 PSC until August 2035. This extension allows IPC to continue to produce light oil from the Bertam Field and to review further potential opportunities within the PM 307 PSC area in Malaysia,” said Mike Nicholson, IPC’s CEO.

“This extension is mutually beneficial for both IPC and Petronas, facilitating continued production from a field which has a proven track record of safe, stable operations with high uptime from the existing facilities. IPC has an experienced team of management and operational personnel in Malaysia who will continue manage the Bertam Field operations.”

Completion of the continuation of the PM 307 PSC remains subject to the finalization of amendment documentation, expected to take place in the first quarter of 2023.