Petronas - Malaysia

Partners ink contract for ultra-deepwater block in Malaysia

Malaysia’s Petronas has signed a Production Sharing Contract (PSC) with TotalEnergies, Petronas Carigali, Sabah Shell Petroleum Company (SSPC), and Shell Sabah Selatan (SSS) for an ultra-deepwater block located off the coast of Sabah, Malaysia.

For illustration purposes; Source: Petronas

Block SB 2K is located in a water depth of up to 3,000 metres, covering 1,952 sq km. Petronas said it is situated in the prolific northwest ultra-deepwater area within a proven hydrocarbon basin with promising hydrocarbon potential.

Under the PSC terms, TotalEnergies will be the operator with a 34.9 per cent participating interest. Petronas Carigali holds a 40 per cent participating interest while the remaining 25.1 per cent is equally split between the other two partners, SSPC and SSS.

Signing the PSC on behalf of Petronas was Senior Vice President of Malaysia Petroleum Management (MPM), Mohamed Firouz Asnan, while TotalEnergies was represented by its General Manager, Exploration and Production Malaysia, Xavier Faugeras. Petronas Carigali was represented by Vice President Exploration, Mohd Redhani Abdul Rahman, SSPC by its Finance Manager, Upstream Malaysia, Hilmi Yusof and SSS by its General Manager, Sabah Deepwater, Upstream Malaysia, Prithipal Singh.

Mohamed Firouz 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.”

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These five blocks now come with available 3D seismic data from a recent mega multi-client survey, which will accelerate exploration drilling programmes.

Firouz added: “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.”