Petros inks first PSC for offshore exploration

(From left) Ibrahim, Nizam, Abang Johari, Taufik and Economic Planning Unit (EPU) Director Dr Abdullah Zaidel during a photocall.

KUCHING: Petroleum Sarawak Berhad (Petros) through Petroleum Sarawak Exploration and Production Sdn Bhd (PSEP) has been awarded its first production sharing contract (PSC) with Sarawak Shell Berhad (SSB) and Petronas Carigali Sdn Bhd (PCSB).

Under the PSC, SSB as operator of the contract, gets 85 percent equity while PSEP and PCSB get 7.5 percent respectively.

“Block SK437 measuring 2,015 square kilometres in size and up to 50 metres in water depth is located towards the southwest of the prolific Central Luconia province off the coast of Sarawak.

“Besides Exploration Block SK437, PSEP also holds interests in MLNG Satu PSC and Kumang Cluster PSC ventures with 20 percent and 50 percent equity interest respectively,” Petros said in a statement today.

Petros group chief executive officer, Datuk Sauu Kakok; director of PSEP and executive vice president Upstream, Dr James Foo; vice president of Exploration, Upstream, Emeliana Rice-Oxley; senior vice president of Malaysia Petroleum Management, Mohamed Firouz Asnan; chairman of Shell Malaysia and senior vice president of Shell Malaysia Upstream, Ivan Tan represented the respective organisations during the virtual PSC signing ceremony.

The signing ceremony was part of the inaugural annual strategic dialogue between Petronas and Sarawak government held partly virtually.

The Sarawak team was led by Chief Minister Datuk Patinggi Abang Johari Tun Openg and included Deputy Chief Minister Datuk Amar Awang Tengah Ali Hasan.

The Petronas team was led by its chairman Tan Sri Ahmad Nizam Salleh and included Petronas president and chief executive officer Tengku Muhammad Taufik Tengku Kamadjaya Aziz and board of director member Datuk Ibrahim Baki.

Meanwhile, Sauu said Petros’ participation in the SK437 PSC would provide an opportunity for PSEP to expand its role in exploration activities off the coast of Sarawak.

“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, further diversifies PSEP portfolio of assets.  We look forward to close collaboration with our operating partners to maximise the value of the PSCs,” he added.

Petros also recently concluded its inaugural award and signing of the Block SK433 Petroleum Contract, Onshore Sarawak resulting from Onshore Sarawak Bid Round 2020.

“This is per the Commercial Settlement Agreement signed on 7 December 2020 between Petronas, Sarawak and Federal governments. Petros is the regulator and manager for oil and gas resources for onshore Sarawak. The winning bidders for this block are Petra Energy (as operator) and Uzma Energy (as non-operating partner),” it said.