Petronas Expands Portfolio With Five More Offshore Blocks – Rigzone News

Malaysias giant Petronas has signed new Production Sharing Contracts (PSCs) for five offshore blocks located offshore the coast of Sabah and Sarawak.

Petronas said that the PSCs were signed for SB412, 2W, and X blocks offshore Sabah and SK439/SK440 located off the coast of Sarawak. The blocks were awarded as part of the Malaysia Bid Round 2021.

The contract signing ceremony took place on Tuesday, March 22, at the Kuala Lumpur Convention Centre.

The PSC for Block SB412 was signed between Petronas, PTTEP, and SapuraOMV, while the PSCs for ultra-deepwater Blocks 2W and X were signed between Petronas, Sabah Shell Petroleum, Shell Sabah Selatan, and Petronas Carigali.

The PSC for Sarawaks Block SK439/SK440 was signed between Petronas, Shell, and Petroleum Sarawak Exploration & Production.

Petronas Senior Vice President of Malaysia Petroleum Management Mohamed Firouz Asnan signed the PSCs on behalf of the company.

Petronas is pleased that the newly signed PSCs would attract a capital commitment of about RM600 million over $142 million in exploration activities in Malaysia, reflecting the attractiveness of Malaysias hydrocarbon resources potential, Firouz said.

The reduction in global exploration drilling over the past two years has pressured the industry to resolve current supply shortages. As global economies have started to recover post-pandemic, the industry needs to ensure exploration activities continue to sustain production.

Petronas is committed to reducing carbon emissions from our operations with technologies such as Carbon Capture and Storage. We look forward to working together with our partners to provide safe and reliable energy to the market, he concluded.

The Malaysia Bid Round is an annual Malaysia licensing round that offers investors diverse upstream opportunities, including exploration acreages, discovered resource opportunities, and late-life-producing assets. The 2021 round was virtually launched in late February 2021.

As for the Malaysia Bid Round 2022, it was launched on January 27 and it offered 14 exploration blocks, six clusters of discovered resource opportunities, and one late-life asset cluster.

Petronas, via Malaysia Petroleum Management, manages petroleum arrangements in Malaysia and provides stewardship on upstream petroleum activities.

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Petronas Expands Portfolio With Five More Offshore Blocks - Rigzone News