KUCHING: Petroleum Sarawak Exploration and Production Sdn Bhd (PSEP), a wholly owned subsidiary of Petroleum Sarawak Bhd (PETROS), together with Sarawak Shell Bhd (SSB) and PETRONAS Carigali Sdn Bhd (PCSB), have been awarded the SK437 Production Sharing Contract (PSC) on Wednesday.
The participating interests of SSB, PSEP and PCSB are 85%, 7.5% and 7.5% respectively, with SSB being the operator of the PSC.
Block SK437, measuring 2,015 square kilometres in size and in water depths of up to 50 metres, is located toward the southwest of the prolific Central Luconia province, off the coast of Sarawak, offshore Malaysia.
At the virtual PSC signing ceremony, PETRONAS, PETROS, SSB, PSEP and PCSB were represented respectively by Senior Vice-President of Malaysia Petroleum Management, Mohamed Firouz Asnan; PETROS Group Chief Executive Officer (CEO), Datuk Sauu Kakok; Chairman of Shell Malaysia and Senior Vice-President of Shell Malaysia Upstream, Ivan Tan; Director of PSEP cum Executive Vice-President Upstream, Dr James Foo; and Vice-President of Exploration Upstream, Emeliana Rice-Oxley.
In a statement issued by PETRONAS yesterday, Mohamed Firouz said Shell and other partners have built a legacy of milestones that contribute to the success of the countrys’ oil and gas industry.
“It is our hope that this new partnership with PSEP and PCSB in Block SK437 would bring the industry to greater heights through complementary strengths and capabilities,” he said.
“We also welcome PSEP’s first involvement in an offshore exploration PSC, expanding its current portfolio with participating interests in producing PSCs of MLNG and Kumang Cluster.”
Mohamed Firouz added that this new award was further testament to Malaysia’s attractiveness as a global investment destination.
“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 of our partners and PETRONAS as the custodian of the national hydrocarbon resources,” he said.
For Shell, SK437 is a new addition to its existing interests in 15 PSCs in Malaysia, of which eight are located off the coast of Sarawak, whilst the remaining seven are located off the coast of Sabah.
The signing was part of the programme for the inaugural Annual Strategic Dialogue between PETRONAS and the Sarawak Government that was held partly virtually between the Chief Minister’s Office and the relevant parties at various locations here and in Kuala Lumpur.
The Sarawak team that was led by Sarawak Chief Minister, Datuk Patinggi Abang Johari Tun Openg, included the Deputy Chief Minister, Datuk Amar Awang Tengah Ali Hassan.
Present during a courtesy visit earlier to the Chief Minister’s Office was an 11-member PETRONAS team led by its Chairman, Tan Sri Ahmad Nizam Salleh, as well as PETRONAS President and CEO, Tengku Muhammad Taufik Tengku Kamadjaya Aziz.
PETROS said in its statement, besides the PSC for Exploration Block SK437, PSEP also holds interests in MLNG Satu PSC and Kumang Cluster PSC ventures off the coast of Sarawak, with 20% and 50% equity interest respectively.
“PETROS’ participation in the SK437 PSC will provide an opportunity for PSEP to expand its role in exploration activities off the coast of Sarawak,” said PETROS Group CEO, Datuk Sauu Kakok.
“For this PSC, PETROS EP is being carried out for the exploration phase which allows it to manage its exploration risks while seeking to build its capability.
“The addition of Exploration Block SK437 PSC to our existing producing ventures, MLNG PSC and Kumang Cluster PSC, further diversifies 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,” Datuk Saau added.
PETROS has also recently concluded its inaugural award and signing of the Block SK433 Petroleum Contract, Onshore Sarawak resulting from Onshore Sarawak Bid Round 2020.
According to the Commercial Settlement Agreement signed on 7 December 2020 between PETRONAS, the Sarawak State Government and the Federal Government, PETROS is the regulator and manager of oil and gas resources for onshore Sarawak.
The winning bidders for this block were PETRA Energy (as operator) and Uzma Energy (as non-operating partner).
Meanwhile, potential investors seeking to invest in Malaysia are welcomed to participate in the Malaysia Big Round 2021 (MBR 2021) which is currently ongoing with the bid submission deadline set on 3 September 2021.
