Historic! Petros’ first PSC with Shell, Petronas to explore Block SK437 off Sarawak’s coast

Tan (left) and Mohd Firouz showing the signed PSC documents during the PSC signing ceremony.

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KUCHING, July 28: A subsidiary of Petroleum Sarawak Berhad (Petros), Sarawak Shell Berhad (SSB) and Petronas Carigali Sdn Bhd (PCSB) have been awarded the Production Sharing Contract (PSC) of Block SK437, off the coast of Sarawak, offshore Malaysia.

Petros’ subsidiary, Petroleum Sarawak Exploration and Production Sdn Bhd (PSEP) and PCSB will hold a participating interest of 7.5 per cent each respectively while SSB as the operator of the PSC will hold 85 per cent.

According to Petros’ statement today, Block SK437, measuring 2,015 square kilometres in size and in water depths of up to 50 metres, is located toward the southwest of the prolific Central Luconia province, off the coast of Sarawak.

At the virtual PSC signing ceremony today, Petros was represented by its group chief executive officer (CEO), Datuk Saau Kakok while PSEP was represented by its director and executive vice-president (upstream) Dr James Foo and vice—-president of exploration (upstream) Emeliana Rice-Oxley

PCSB was represented by its senior vice-president of Malaysia Petroleum Management, Mohamed Firouz Asnan while Shell Malaysia chairman and senior vice-president of Shell Malaysia Upstream, Ivan Tan represented SSB.

From left: Awang Tengah, Abang Johari and Ahmad Nizam attending the virtual signing of the PSC for Block SK437, off the coast of Sarawak.

The PSC signing was part of the programme of the inaugural Annual Strategic Dialogue between Petronas and the Sarawak government that was partially conducted virtually between the Chief Minister’s Office and several other parties here and also in Kuala Lumpur.

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.

Present at the Chief Minister’s Office was the 11-member Petronas team led by Petronas chairman Tan Sri Ahmad Nizam Salleh as well as Petronas president and CEO Tengku Muhammad Taufik Tengku Kamadjaya Aziz.

Earlier, the Petronas delegation paid a courtesy call on Abang Johari.

Besides Exploration Block SK437 PSC, PSEP also holds interests in MLNG Satu PSC and Kumang Cluster PSC ventures with 20 per cent and 50 per cent equity interest respectively off the coast of Sarawak.

“Petros’ participation in the SK437 PSC will 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 in off the coast of Sarawak. We look forward to close collaboration with our operating partners to maximise the value of the PSCs,” said Saau.

The Petronas delegation paying a courtesy call on Abang Johari today (July 28, 2021) at the Chief Minister’s Office. From left: Petronas board member Dato Ibrahim Baki, Ahmad Nizam, Abang Johari, Tengku Muhammad Taufik and Economic Planning Unit Director Dr Abdullah Zaidel.

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

As for the Commercial Settlement Agreement signed on Dec 7, 2020 between Petronas, the Sarawak government and the federal government, 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). — DayakDaily