KUCHING: Petroleum Sarawak Exploration and Production Sdn Bhd (PSEP), together with Sarawak Shell Bhd and Petronas Carigali Sdn Bhd, have been awarded the SK437 production sharing contract (PSC) off the coast of Sarawak.
PSEP is the wholly owned subsidiary of state-owned Petroleum Sarawak Bhd (Petros).
The participating interest of Sarawak Shell, PSEP and Petronas Carigali are 85%,7.5% and 7.5% respectively, with Sarawak Shell being the operator of the PSC.
Block SK437, measuring 2,015 sq km in size with water depths of up to 50m, is located towards the south-west of the prolific Central Luconia province, off the coast of Sarawak, according to Petros in a statement yesterday.
At the visual PSC signing, Petroliam Nasional Bhd (Petronas) was represented by senior vice-president of Malaysia petroleum management Mohamed Firouz Asnan.
Other signatories were the chairman of Shell Malaysia and senior vice-president of Shell Malaysia upstream Ivan Tan, Petros group chief executive officer Datuk Sauu Kakok, director of PSEP and executive vice-president, upstream, James Foo and vice-president of exploration, upstream, Emeliana Rice-Oxley.
Besides the exploration block SK437 PSC, PSEP also holds interest in MLNG Satu PSC and Kumang Cluster PSC ventures with 20% and 50% equity interest respectively.
Kakok said Petros’ participation in the SK437 PSC will provide an opportunity for PSEP to expand its role in exploration activities off the coast of Sarawak.
Added Foo: “For this PSC, Petros EP is being carried 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, has further diversified PSEP’s portfolio of assets off the coast of Sarawak.
“We look forward to a close collaboration with our operating partners to maximise the value of the contracts.”
Petros recently concluded its inaugural award and signing of the Block SK433 petroleum contract, offshore Sarawak resulting from Onshore Sarawak Bid Round 2020.
Per the Commercial Settlement Agreement signed on 7 December 2020 between PETRONAS, Sarawak State and Federal Government, PETROS is the regulator and manager for oil and gas resources for Onshore Sarawak.