KUCHING: Petroleum Sarawak Berhad (Petros) has begun its onshore oil mining and exploration activities in Sarawak.
The Sarawak oil and gas company has awarded the contract for the operation of block SK433 to Petra Energy Development Sdn Bhd (a subsidiary of Petra Energy) and its joint venture partner Uzma Engineering Sdn Bhd (a subsidiary of Uzma Berhad).
The Chief Minister’s Office (CMO), in a statement on Friday (June 18), has endorsed the conditional award by Petros for the block which covers the Miri-Marudi area in northern Sarawak.
“The award signifies a milestone – the realisation of the state government’s control of oil mining and exploration in all the onshore areas of the state.
“This is pursuant to the Commercial Settlement Agreement (CSA) between the state government and Petroliam Nasional Berhad (Petronas) signed on Dec 7, 2020,” it said.
It said the state government is looking forward to the resumption of active onshore exploration and production activities after it was discontinued for several years.
“Petros, as a state-owned petroleum company, will be a one stop centre for the state; playing the role of resource regulator and manager.
“This award is the result of a competitive bidding exercise that was managed by Petros since January this year,” it said.
Meanwhile, Petros in the same statement said Phase 1 of the SK433 petroleum contract is for an initial four-year period with option of one additional year extension to complete its exploration and appraisal work/activity commitments.
“Upon the successful outcome of Phase 1, the subsequent Phase 2 will involve development and production activities,” it said.
It added that the successful investor met the technical and financial essential-capability requirements and has also submitted an acceptable bid of ‘work-programme of activity commitments’ aimed at rejuvenating exploration and production activities for the Block SK433 contract area.