Sapura Energy signs maiden farm-in deals in Australia

President and group chief executive officer Tan Sri Shahril Shamsuddin said the company aims to return to the black when the utilisation of its drilling and E&C business crosses the 70% mark.

PETALING JAYA: Sapura Energy Bhd’s unit has secured deals to participate in three offshore exploration permits held by Australia-based Finder Exploration Pty Ltd, marking the group’s foray into the upstream oil and gas (O&G) business in the land Down Under.

In a statement, Sapura Energy said its wholly owned subsidiary – Sapura Upstream Sdn Bhd – had signed farm-in agreements to three offshore exploration permits held by O&G company Finder.

“Our entry into Australia marks another significant milestone for our upstream business, as we continue to pursue growth in line with our strategy to expand our portfolio and acreage position,” said Sapura Energy president and group chief executive officer Tan Sri Shahril Shamsuddin.

“Our joint venture with Finder is a demonstration of the trust and recognition for both our shallow and deep-water capabilities, technical skills and geological expertise,” he said.

Sapura Energy said following the signing of the farm-in agreements with Finder, and subject to securing requisite regulatory approvals, Sapura Upstream would acquire interests in blocks EP 483 and TP/25, WA-412-P, and AC/P 61. All three exploration permits are located within the North West Shelf O&G province off Western Australia.

“The EP 483 and TP/25 permit is located close to infrastructure, in shallow water at the southern margins of the Carnarvon Basin, while the WA-412-P permit is located in the northern Carnarvon Basin, adjacent to several large O&G fields. Both Carnarvon Basin permits contain high-quality, drill-ready prospects offering significant upside potential. The AC/P 61 permit is located in the Vulcan sub-basin, where it is surrounded by O&G discoveries and contains numerous prospects and leads,” Sapura Energy said.

The completion of the farm-in remained subject to regulatory approvals, it said.

“On completion, Sapura Upstream will acquire a 70% interest in all three exploration permits and assume operatorship, while Finder will retain a 30% interest in the permits. With the farm-in, the JV plans to drill two exploration wells in the Carnarvon Basin permits during 2019-2020 and acquire seismic data in the AC/P 61 permit during 2019 in order to mature these potential drilling locations,” it added.

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