Petronas awards block off Malaysia to ConocoPhillips
Malaysian energy giant Petronas has awarded Block SB405 offshore Malaysia to ConocoPhillips and Petronas Carigali Sdn. Bhd.
Petronas said that the award of this exploration block was expected to bolster exploration activities off the coast of Sabah following the opening of more block investment opportunities in the country.
The PSC was signed on 19 February 2021. Petronas was represented by the SVP of Malaysia petroleum management Mohamed Firouz Asnan, Petronas Carigali was represented by the VP of exploration and upstream Emeliana Rice-Oxley, while Erik Keskula signed the PSC for ConocoPhillips’ Malaysian subsidiary.
ConocoPhillips is the operator of the Block SB405, with a participating interest of 85 per cent, while Petronas Carigali holds the remaining 15 per cent.
SB405 is the new addition to ConocoPhillips’ existing interests in five PSCs in Malaysia, which are Block J, G, and Kebabangan located off the coast of Sabah and SK304 and WL4-00 located off the coast of Sarawak
Mohamed Firouz said: “The entry of ConocoPhillips with its world-class proprietary seismic technology into Block SB405 is expected to enhance the hydrocarbon resource potential off the coast of Sabah. This is an area that has a proven working petroleum system with previous discoveries such as Kuda Terbang and Nymphe fields.
“At the same time, the new investment of ConocoPhillips in Block SB405 represents enhanced confidence of foreign investors in the upstream sector in Malaysia.
“The partnership with Petronas Carigali provides that winning combination to support the potential development of the resource within the North East Sabah basin area upon successful commercialisation of the discoveries.
“Under our right asset, right player strategy, we hope to unlock the full potential of the hydrocarbon resources in Malaysia towards successfully delivering clean and reliable energy to our customers in Malaysia and abroad”, he added.
Block SB405 is located in the North East Sabah basin, off the coast of Sandakan, with an area size of 5,857 square kilometres and in a water depth of up to 100 metres.
In related company news, Petronas said on Friday that it would be offering 13 offshore exploration blocks in Malaysia at the upcoming Malaysia Bid Round 2021 set to occur on 26 February 2021.
Also included are six discovered fields to incentivise investors to undertake more extensive exploration activities within those blocks.
This year’s MBR also features the offering of four deepwater blocks adjacent to the coast of Sarawak and Sabah, which saw prominent exploration discoveries in recent years.